2 days agoMeta is expected to fire 11 thousand people
Periskopi(4 years ago)
(4 years ago)The Facebook company, Meta, is expected to dismiss 11,000 people, or about 13 percent of its workforce, as it is facing problems and uncertainty in annual revenues, as well as other problems of the technology industry. So says the November 9th letter that the founder of this company, Mark Zuckerberg, was [...]
So says the November 9th letter that the founder of this company, Mark Zuckerberg, has addressed to his workers.
Job reductions come only a week after the dismissal of almost half of the workers at the Twitter company, which is now owned by billionaire Elon Musk.
Zuckerberg also said he had made the decision to employ many people during the closing period, predicting rapid growth even after the end of the pandemic.
The “unfortunately did not go as expected”, he said.
Not only have online sales become the previous trends, but the macroeconomic downturn, increased competition and loss of advertising have made our income much lower than I expected. I've missed and taken responsibility for this”, he added.
Meta, like other social media companies, had increased income during the closing period in the pandemic, because more people were buying from home. But when the opening began and the people began to emerge, these revenues were reduced.
The company's stock value has dropped to more than 71 percent since the beginning of the year, and these shares are now traded at 2015 levels.
The economic downturn and a grim prospect for online advertising thus far have also contributed to company problems. This summer, Meta marked the first drop in revenues, followed by another larger decline in autumn.
Meta and her advertisers are preparing for a possible recession.
Another challenge is the question of Apple's privacy, which made it increasingly difficult for social media platforms such as Facebook, Instagram and Snap to track people without their consent and charge ads for them.
We have reduced spending costs throughout our business. We're restructuring teams to increase our efficiency. But only with these measures can we not bring our expenses in line with our incomes, so I have also made the difficult decision to evacuate our workers”, he said.
More costs cuts in Meta will take place in the coming months, Zuckerberg said.
Former employees will receive their basic salary for another 16 weeks, plus two extra weeks each year for the company, Zuckerberg said.
Health insurance for these employees and their families will continue for six months.
