Here's why Zuckerberg's Meta fired 11,000 employees
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| Here's why Zuckerberg's Meta fired 11,000 employees |
- More than 11,000 employees were let go by Meta.
- According to Meta, a number of factors led to the huge layoffs.
- Additionally, Meta is taking numerous actions to improve its effectiveness.
The CEO of Meta, Mark Zuckerberg, stated in a letter to staff that the company has decided to let go of 11,000 workers globally, or 13% of the entire workforce. Despite what is reportedly the largest headcount cut in the business' 18-year history, Zuckerberg is steadfast in his commitment to the creation of the Metaverse. However, why did this occur? The causes are as follows:
Why did Meta fire over 11,000 workers?
Mark acknowledged that the company is undergoing a huge layoff and that he is dismissing 11,000 employees in a letter to employees on Wednesday. In response to the question of why, he stated that the company's excessive investments made during the coronavirus pandemic were mostly to blame.
In Mark's words, he expected the e-commerce boom and transition to online environments to continue after the pandemic period, but they "didn't play out the way" he had anticipated. In addition, he said that the revenue was "far lower" than he had anticipated due to the global slump.
Additionally, Mark listed "increasing competition" and "ad signal loss" as additional causes of revenue loss. The former could be attributed to TikTok's significant social media presence, while the latter is related to what Apple has done with regard to app tracking openness. For those who are unaware, Apple added a feature that allowed users to request that an app not track them.
The business has previously claimed that it has lost $10 billion ever since Apple made app tracking transparency available. Additionally, Meta said that during the third quarter, the company's overall sales fell by 4%, and operating income dropped by 46% to $5.66 billion.
Now, what is Meta going to do?
Mark now claims that Meta has to improve its "capital efficiency." To do this, the corporation has redirected a portion of its resources toward a smaller number of high-priority development sectors, including the AI discovery engine, advertising and commercial platforms, and the "long-term vision for the
As we've already said, this demonstrates Mark's continued pursuit of his original goal of creating the Metaverse, which is why Facebook was renamed Meta. In addition, Zuckerberg was informed that Meta had reduced costs across its operations, including "cutting back budgets, eliminating perks, and shrinking the real estate footprint." The corporation, with a focus on the metaverse, is also reorganizing teams to boost productivity.
Last but not least, Meta has decided to postpone hiring until March 2023. The main goal is to improve efficiency across a range of growth areas, including cost structure control and better AI structure efficiency.
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