Meta Cuts 13% of Workforce: Over 11,000 Jobs Gone
In a jaw‑dropping move, Meta Platforms Inc. announced on Wednesday (Nov 9) that it will axe about 13% of its staff—that’s more than 11,000 employees. This marks the first workforce reduction in the company’s 18‑year history and is one of the largest tech layoffs of the year.
Why the Axe?
Meta’s decision follows a wave of cuts across the tech sector, including big names like Twitter and Microsoft. The post‑pandemic boom that once fueled soaring valuations has now taken a nosedive, thanks to:
- Soaring inflation
- Rapidly rising interest rates
- A lame‑down in online commerce as consumer spending cycles return to pre‑COVID levels
Chief Executive Officer Mark Zuckerberg took full responsibility for the misstep in a heartfelt message to employees.
Key Points from Zuckerberg
- Capital efficiency is now top‑prioritized.
- Resources will shift toward high‑growth arenas like AI discovery, advertising platforms, and the metaverse.
- He admitted the revenue projection was overly optimistic.
What Employees Get
Meta has outlined a severance package that includes:
- 16 weeks of base pay plus an extra two weeks for each year of service.
- All remaining paid time off.
- Six months of healthcare coverage.
- Vesting on Nov 15 for those who qualify.
Additional Cuts
Beyond layoffs, Meta plans to:
- Trim discretionary spending.
- Keep its hiring freeze active through the first quarter.
Stock Reaction
Though the company’s shares have plunged over two-thirds in value, they managed to climb about 3% in pre‑market trading—a surprise glow amid the gloom.
