Meta CEO Mark Zuckerberg said the company would cut more than 11,000 jobs, calling himself responsible for the first largest layoff in the social media giant's history.
Meta disclosed the layoffs in a statement Wednesday, amounting to about 13% of its workforce. The company, which owns Facebook and Instagram, will also extend its hiring freeze into the first quarter.
"I want to take responsibility for these decisions and for where we are today," Zuckerberg said in a statement sent to Meta employees and posted on the company's website.
"I know this is going to be tough for everyone, and I'm especially sorry for those affected," he wrote.
Shares of Meta have fallen 71% as of Nov. 8 this year. The company is taking steps to cut costs after several quarters of disappointing earnings and revenue declines.
It was the toughest layoff at Facebook since its founding in 2004, reflecting a sharp slowdown in the digital ad market and an economy teetering on the brink of recession. Meanwhile, Meta has been spending billions of dollars to build a "metaverse," but it may be years before it's widely accepted.
Zuckerberg said in the statement that when the new crown epidemic began, global business was moving online, especially the surge in e-commerce led to a significant increase in revenue.
"But the macroeconomic downturn, increased competition, and loss of advertising signals resulted in our revenue being much lower than expected," he wrote. "I was wrong."
Zuckerberg noted that laid-off U.S. employees will also receive 16 weeks of base pay as severance pay, with an additional two weeks of pay for every additional year of service, with no cap. The company also offers 6 months of health insurance, as well as career services and immigration support. Outside the U.S., pay packages will also be similar and in line with local labor laws.
Zuckerberg warned employees in late September that Meta intended to cut expenses and restructure the team to adapt to the changing market.
Meanwhile, Zuckerberg has been begging investors for patience as he pours billions into his vision of a "metaverse," a collection of digital worlds accessible through virtual and augmented reality devices. The effort requires intensive investments in hardware and research that may not pay off for many years. Now, Zuckerberg must complete a major transformation of the company with fewer people.
