Not just Twitter, as expected and also announced Half, which includes Facebook, Instagram, and Whatsapp, cuts the staff. The announcement comes in a letter from the founder Mark Zuckerberg to employees after the brand has lost 70% of its value in one year. The cut is 13% of the workforce, the number of employees is 11 thousand, which seems enormous despite the global size of the company.
“I was wrong, and I take responsibility for it” writes Zuckerberg in the letter to the employees. For the company founded in 2004, then it was just Facebook, it’s the first major restructuring and the hiring freeze is extended until the first quarter of 2023.
The letter was filed with the US Securities and Exchange Commission and explains that the cut was necessary after “a significant increase in investments” which did not lead to the expected results. “Not only thee-commerce it has never returned to the levels of the acute phase of the pandemic, but the macroeconomic recession, the increase in competition and the decline in online advertising have meant that our revenues were much lower than I expected ».
In Zuckerberg they cost investments in Metaverse for now it hasn’t taken off: 3.7 billion dollars on a sector cost the salaries of many employees and a general reorganization. For Meta employees, e-mail remains active only for today. Here they get the news and already “I am no longer able to access most of Meta’s systems immediately”. “Later they can talk to someone to get their questions answered,” the letter reads.
There are details for the US, not for the employees in the rest of the world. Those residing in the United States will receive four months’ salary, plus two weeks for each year of service, and six months of health insurance.
Downsizing isn’t just personal. We have to “To become a leaner and more efficient company” Mark Zuckerberg explained. There will be a “reduction in our real estate perimeter, we are moving to sharing desks for people who spend most of their time out of the office.” In the coming months we will implement further cost reductions like this one ». And again: «a thorough review of our infrastructure spending. As we build our artificial intelligence infrastructure, we focus on becoming even more efficient ».
Source: Vanity Fair
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