More than 11,000 employees will be laid off by Facebook's parent company, Meta.

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On Wednesday, Facebook parent company Meta announced massive layoffs, laying off 11,000 people, or roughly 13% of its workforce. 

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The company has reduced its workforce gradually in the past, but these cuts mark the first significant ones since it was founded in 2004. 

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According to Meta CEO Mark Zuckerberg, the company overhired during the pandemic, assuming that the company's ultra-rapid growth would continue.

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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. I got this wrong, and I take responsibility for that In a message to employees, Zuckerberg wrote. 

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Meta, which employs approximately 87,000 people, has recently implemented cost-cutting measures such as hiring freezes and the elimination of non-essential travel. 

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In his note to employees, Zuckerberg said focusing investment on a small number of core areas and reducing costs elsewhere, like in its real estate footprint, perks, and, yes, employee base. 

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The company has made a multibillion-dollar investment in the so-called metaverse, a virtual reality utopia in which people live, work, and play. It is currently an expensive, unproven turn away from the social media industry.

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Because of the uncertain economy, advertisers have reduced their spending. The pullback has hit Meta hard, nearly all of its revenue comes from advertisements. It has also caused pain for ad-supported services such as Snap and YouTube. 

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According to Zuckerberg, the 11,000 Meta employees who will lose their jobs will receive 16 weeks of severance pay and six months of health insurance. Visa holders who have been laid off will be given resources to help them change their immigration status, he said. 

Photo Credit: Google

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