Facebook parent company Meta cuts 11,000 jobs

In the United States, terminated employees will receive 16 weeks of base pay and two additional weeks of pay for each year of service. (Photo: 123RF)

Paris. For the first time since Facebook’s inception, Mark Zuckerberg had to announce a social plan for his employees on Wednesday: Meta (META), the social network giant’s parent company, would cut 11,000 jobs, or about 13% of employees. its workforce.

On Wall Street, where the Meta announcement was widely anticipated, the group’s shares rose just over 4% in electronic trading ahead of the opening.

“Today, I’m going to talk about some of the most difficult changes we’ve made in Meta’s history,” Zuckerberg said in an employee address. “I have decided to cut our team size by about 13% and part ways with our 11,000 talented employees.”

Recruitment within the group, which also owns social networking site Instagram and instant messaging service WhatsApp, is also on hold until the end of March 2023.

“I want to take responsibility for these decisions and how we got here. I know this is hard for everyone, and I’m especially sorry for those affected,” Zuckerberg added.

The Meta did not immediately clarify the geographic distribution of the abbreviations.

The group, which had about 87,000 employees worldwide at the end of September, reported disappointing third-quarter financial results, with sales and profits plummeting and headcount stagnating.

This poor health has accelerated the decline in the company’s stock, which has lost more than 70% in total on the Nasdaq since the start of the year. Mr. Zuckerberg also announced on this occasion that the group’s staff will not increase and may even be reduced by the end of 2023.

In the United States, terminated employees will receive 16 weeks of base pay and two additional weeks of pay for each year of service. The company will cover their health insurance for 6 months.

It also aims to assist non-US employees with work visa procedures.

Layoffs in technology

The layoffs at Meta are part of a broader context of mass layoffs in the sector, especially as ad revenue slows, the bread and butter of many tech companies.

So at the end of August, Snap, the parent company of the Snapchat app, cut about 20% of its workforce, or more than 1,200 employees.

Last week, two Silicon Valley companies, Stripe (online payments) and Lyft (booking cars with a driver), reported massive layoffs as Amazon froze the recruitment of employees in its offices.

Twitter, recently acquired by Elon Musk, just laid off about half of its 7,500 employees.

“This is a sad moment and there is no getting away from it,” Mr. Zuckerberg wrote. “To those leaving, I want to thank you again for all your contributions,” Zuckerberg wrote.

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