(Reuters) – Meta Platforms, the US group that owns Facebook and Instagram, among others, announced on Wednesday its intention to cut its workforce by 13%, which would mean cutting more than 11,000 jobs, a large-scale social plan that guides justified by rising costs and the deterioration of the advertising market.
This social plan, one of the largest launched this year in the tech industry, is the first in the history of the company co-founded by Mark Zuckerberg 18 years ago.
While the pandemic has boosted the activity of “tech” companies and led to a sharp increase in their market value, the return of inflation and rising interest rates have led to difficulties this year that have already led several other large companies such as Tesla or Microsoft , crash into their work force.
“Not only is e-commerce back on track, but the macroeconomic downturn, increased competition, and loss of ad revenue have resulted in much lower sales than I expected,” Mark Zuckerberg, CEO, said in a message to all Meta employees. .
“I made this mistake and I am responsible for it.”
He added that the group wanted to focus its resources and capital on “high priority growth areas” such as the AI engine, advertising and professional platforms, or the “Metaverse” project.
Meta also plans to cut its unlimited spending and extend its recruitment moratorium until the end of the first quarter of 2023.
Employees whose position has been abolished are entitled to a refund equivalent to 16 weeks of base salary plus two weeks for each year of service.
Meta, which has fallen 71% since the start of the year, rose 3% in pre-trading on Wall Street following the announcement.
(Report by Aditya Soni, Nivedita Balu and Eva Matthews in Bangalore, French version by Marc Angrand, edited by Jean-Stephan Bross)