The 11,000 employees that Facebook’s parent company Meta has decided to let go of will receive 16 weeks of base salary plus two extra weeks for each year of service, with no cap. This means that about 13% of its workforce is currently jobless. Reductions will be made on Facebook and Instagram.
Mark Zuckerberg, CEO of Meta, wrote in a note to the staff, “I want to take accountability for these decisions and for how we got here.” He also said that the company is taking a number of further actions to make a leaner and more efficient company by lowering discretionary expenditure and extending the hiring freeze through Q1. I know this is challenging for everyone, and I’m especially sorry to those impacted. Those affected will also get compensation for any remaining paid time off (PTO), in addition to the severance pay. The expense of healthcare for employees and their families will also be covered by the company for a period of six months. Additionally, Meta will offer three months of career help through a third-party vendor, including first access to unreleased employment leads.
According to what you and your family need, “We have dedicated immigration specialists to help guide you,” Zuckerberg stated. According to the Company, the Restricted Stock Unit (RSU) will vest on November 15th. A similar level of support will be provided to employees based abroad. The announcement of distinct procedures will take into account regional employment legislation. Given the level of access to sensitive information, the Company further declared that it will immediately revoke any access to the Meta systems. However, the email addresses will be accessible all day so that individuals can send and receive farewell emails.
Zuckerberg mentioned that after the COVID-19 outbreak, things didn’t turn out as expected. “Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that,” he said. The Company wanted to improve its capital efficiency in this new environment. The metaverse’s long-term vision, an AI discovery engine, business platforms, and other high-priority growth sectors will receive more of Meta’s resources going forward.
“We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real-estate footprint. We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go,” Zuckerberg said. I want you to know that we’re making these decisions to ensure our future is strong, Zuckerberg said in a message to the staff who were saved from this layoff.