On Wednesday, Meta Platforms Inc. will begin the process of terminating staff. According to a story in the Wall Street Journal, Chief Executive Mark Zuckerberg admitted to hundreds of executives that he was responsible for the decline in the company’s performance.
People familiar with the situation told the WSJ that Mark Zuckerberg gave a glum appearance during the meeting on Tuesday, acknowledged responsibility for the firm’s mistakes, and admitted that his “over-optimism” about growth led to the company having too many employees.
Earlier reports suggested that Facebook’s parent company, Meta, was planning “large-scale layoffs,” which could be the largest reduction to date at a major technology firm in a year that has seen a retrenchment in the technology industry. The phrase “large-scale layoffs” was coined by Bloomberg News.
The Wall Street Journal (WSJ) previously indicated that Meta, a company that employs more than 87,000 people, may likely lay off “many thousands of employees.”
It has been reported that Mark Zuckerberg confirmed “wide cuts” during the most recent meeting and explicitly listed the recruiting and business teams as among those that are among those that face layoffs.
Later on Wednesday, a wider internal notification of the plan to lay off employees is likely to be made.
According to Lori Goler, who is the head of human resources for the company, employees who lose their positions would receive a severance package equal to at least four months’ worth of compensation.
The company has been in existence for 18 years, and the upcoming mass layoff is the first significant reduction in headcount that has taken place.
A day after Twitter’s new owner, Elon Musk, fired around half of the company’s 7,500 employees, Jack Dorsey, one of the company’s co-founders and a former CEO, issued an apology to Twitter’s staff. Dorsey’s statement came one week ago.
Dorsey, who co-founded the company in 2006 and resigned as CEO in the previous year, said, “I recognize people are furious with me. I built the company too quickly, which is my fault for why everyone is in this predicament. I’m sorry about that.” Dorsey resigned as CEO in the previous year after co-founding the company in 2006.
Meanwhile, a slowdown or complete cessation of recruiting at tech businesses like Alphabet and Amazon has been prompted by a slowing or rising global economy, rising interest rates, and difficulties with regulatory compliance.
Amazon said in a statement on Nov. 3 that it has suspended “new incremental hires in the corporate workforce.” The massive online retailer halted hiring for its retail division in October.
As customers flocked to the online store for everything from toilet paper to video games during the pandemic, Amazon saw tremendous growth. However, the business overgrew, and CEO Andy Jassy is searching for methods to reduce expenses, such as subletting some of its facilities.
To combat the decline in smartphone sales, chipmaker Qualcomm has also declared a hiring freeze without laying off any staff.
The layoffs at Meta occur at a time when the company has pointed to worsening trends in the macroeconomic environment. At the same time, the firm’s investors have been concerned about its expenditure and threats to the main social-media business.
The growth of that company has slowed down in many markets as a result of the intense competition from TikTok. Additionally, the fact that Apple has made it mandatory for its users to opt into having their devices tracked has reduced the ability of social media platforms to target specific audiences.
The global technology industry, and particularly startup companies, have been experiencing a financial winter as fears of a recession loom. As a result of this, several companies have resorted to sacking staff in order to cut costs.
Read More:-
Who Is Kari Lake? Kari Lake Net Worth, Bio, And Everything Else You Need To Know
