44 C

Facebook parent Meta to fire more than 11,000 employees after low revenue

Meta, the parent of Facebook released a message, revealing more than 11,000 “talented employees” will be released, which is 13% of the total workforce. The founder of Facebook said he takes accountability and is “especially sorry” to the impacted. He also pointed out misjudgments in investments, the weak ad market and the macroeconomic downturn as some of the reasons for the mass layoff.

Facebook parent Meta to lay off more than 11,000 employees after disappointing earnings

Meta fires 11,000 employees to save costs

Meta Platforms Inc said on Wednesday it will let go of 13 percent 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. 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.

“Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected,” Chief Executive Officer Mark Zuckerberg said in a message to employees.

Facebook parent Meta to lay off more than 11,000 employees after disappointing earnings

The executive revealed that predictions on how the online world will move forward after COVID did not play out as expected, and the company faced increased competition, ad loss, leading to diminished revenue. Meta “needs to become more capital efficient” and will shift resources onto a smaller number of high-priority growth areas like the AI discovery engine, as well as the long-term vision for the metaverse.

- Advertisement -TechnoSports-Ad

The company will also scale back budgets, reduce perks and will shrink the real estate footprint, meaning employees will have to share desks in the future. All these measures are not enough to keep the revenue growth, and that’s why Zuckerberg decided to release 13% of the total workforce.

Meta, the parent company of Facebook, WhatsApp and Instagram, reported gross ad revenue of ₹16,189 crore, growing at 74 per cent year-on-year. Globally, Meta posted third-quarter earnings of $4.39 billion, down from $9.2 billion. Meta’s flagship platform Facebook has been losing users in the face of competition from the likes of TikTok, and the company’s pivot to the metaverse is yet to bear fruit.

Meta’s stock rose about 4% in premarket trading on Wednesday after Meta announced the layoffs and was up more than 7% as of 11:25am EDT. The stock has fallen 70% on the year on concern about the company’s spending and weak earnings. It fell to its lowest since 2016 last Thursday, wiping out more than $89 billion of market value, after reporting a drop in revenue in the second quarter.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.




Related Stories

More from author

CONFIRMED: ATK Mohun Bagan will Change Their Name To Mohun Bagan Super Giants

ATK Mohun Bagan likely to be named after the Lucknow Super Giants franchise in a similar fashion. In a sensational development, it has been revealed...

Google Voice to warn users about spam calls

Tech giant Google has blazoned that it's rolling out a “suspected spam frequenter” marker to its telephone service Google Voice, which will advise users...

POCO C50 teased ahead of India launch

After rumors about POCO launching its C50 smartphone in India soon, the company has verified the launch of the phone with a new teaser. The smartphone will be the third investiture of the Poco C series to enter India, succeeding the...

5G smartphone shipments in India to cross 4G shipments in 2023

According to a report from Counterpoint, the number of 5G smartphones packed will pass 100 million in the alternate quarter( Q2) of 2023 and...