Meta Platforms has announced plans to lay off more than 11,000 employees, representing about 13 per cent of its global workforce, marking the first mass layoffs in the company’s history.
Chief Executive Officer Mark Zuckerberg said the decision followed a sharp decline in advertising revenue, increased competition, rising inflation, and slower economic growth. He admitted the company had overestimated post-pandemic growth and accepted responsibility for the miscalculation.
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The layoffs are part of wider cost-cutting measures that include reducing office space, limiting discretionary spending, and extending a hiring freeze into the first quarter of the following year.
Despite the job cuts, Meta said it would continue investing heavily in its Reality Labs division, which is developing the metaverse, even as the unit continues to record significant financial losses.
Affected employees will receive severance packages that include 16 weeks of base pay, additional compensation based on years of service, payment for unused leave, accelerated share vesting, and six months of healthcare coverage.
The announcement comes as several major technology companies, including Twitter, Microsoft, and Snap, also reduce their workforce in response to challenging global economic conditions.
