Meta Platforms Inc stated on Wednesday it’s going to let go of 13 % of its workforce, or greater than 11,000 staff, in one of many greatest know-how layoffs this 12 months because the Fb dad or mum battles hovering prices and a weak promoting market.
The broad job cuts, the primary in Meta’s 18-year historical past, comply with 1000’s of layoffs at different main tech firms together with Elon Musk-owned Twitter and Microsoft Corp.
The pandemic growth that boosted tech firms and their valuations has changed into a bust this 12 months within the face of decades-high inflation and quickly rising rates of interest.
Meta, whose shares have misplaced greater than two-thirds of their worth, stated it additionally plans to chop discretionary spending and prolong its hiring freeze by the primary quarter.
“Today I’m sharing some of the most difficult changes we’ve made in Meta’s history,” the corporate’s founder Mark Zuckerberg stated in a message to staff asserting the layoffs.
“I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.”
An financial slowdown and a grim outlook for internet marketing – by far Meta’s greatest income supply – have contributed to the corporate’s woes. This summer season, Meta posted its first quarterly income decline in historical past, adopted by one other, greater decline within the fall.