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Facebook’s parent company Meta has announced that about 13% of its current workforce has been cut in the first mass layoffs in the company’s history.
In a letter to employees, Meta CEO Mark Zuckerberg announced the layoffs and reiterated that a hiring freeze that began earlier this year will be extended through the first quarter of next year.
according to statement The layoffs have ended 11,000 jobs, as published through Meta’s newsroom. Rumors of layoffs first surfaced over the weekend of Nov. 6 via a Wall Street Journal report from an inside source.
Zuckerberg has said he takes full responsibility for job cuts caused by rising costs and the recent stock market crash.
“I got this wrong and I take responsibility for it.”
The CEO also said that overinvestment in certain areas, along with “macroeconomic downturn, increased competition and loss of advertising signals,” led to lower-than-expected returns.
Related: Facebook Became Meta A Year Ago: Here’s What We’ve Accomplished
The news follows a startling report released by Meta on October 26th, revealing billions of dollars in losses in the Metaverse development branch. Reality Labs, the research and development arm of the Metaverse, posted a loss of $3.67 billion in the third quarter.
During the same quarter, the business generated only $285 million in revenue, the lowest on record for any given time period. The news surprised the company’s shareholders and raised concerns about Meta’s metaverse prospects.
Meta isn’t the only big tech company experiencing mass layoffs.
After Elon Musk bought Twitter for more than $44 billion, the social media company went through a series of layoffs. The layoffs are said to have started on November 4, with speculation circulating that Musk will lay off nearly 50% of his 7,500 employees at the company.
In response, employees filed a class action lawsuit against Musk, alleging that he ignored laws restricting mass layoffs from large companies without at least 60 days of prior warning.
