Meta Platforms Inc said on Wednesday it will let go of 13% of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year as the Facebook parent battles soaring costs and a weak advertising market, Reuters reported.
In his Facebook post, Mark Zuckerberg said that he is ‘sorry’ and took accountability for these decisions.
The broad job cuts, the first in Meta’s 18-year history, follow thousands of layoffs at other major tech companies including Elon Musk-owned Twitter and Microsoft Corp.
Also read: Hybrid work is preferred model among Indian employees: HP Study
The pandemic boom that boosted tech companies and their valuations has turned into a bust this year in the face of decades-high inflation and rapidly rising interest rates.
Meta, whose shares have lost more than two-thirds of their value, said it also plans to cut discretionary spending and extend its hiring freeze through the first quarter, the report adds.
According to report from AP, the downturn in the economy and the unfavourable forecast for online advertising, by far Meta’s largest source of income, have added to the company’s problems. This past summer, Meta recorded its first-ever quarterly sales decrease, which was followed by a larger decline in the following season.
AP report adds, competition from TikTok is also a growing concern as youth flock to the video sharing app over Meta-owned Instagram.
Stay connected with us on social media platform for instant update click here to join our LinkedIn, Twitter & Facebook
Add comment