Facebook parent Meta Platforms Inc has decided to trim 13% of its workforce and will let go of more than 11,000 workers, chief executive Mark Zuckerberg said in a blog post. The layoffs at Meta, one of the biggest in the social media industry, are expected to start from Wednesday, Zuckerberg confirmed, adding that employees who will be leaving today will not be able to access most Meta systems to protect sensitive information.
Zuckerberg also said that Meta will take additional steps to become a “leaner and more efficient” company, which includes cutting discretionary spending and extending the hiring freeze till Q1 of 2023.
Meta reported in September that it has over 87,000 employees. In September, Zuckerberg announced a hiring freeze along with plans to restructure teams to slash expenses.
“Recruiting will be disproportionately affected since we’re planning to hire fewer people next year. We’re also restructuring our business teams more substantially. This is not a reflection of the great work these groups have done, but what we need going forward,” said Zuckerberg.
Zuckerberg said that the company will reduce its real estate footprint and shift to a hotdesk system for workers who are not full time from offices.
The social media company will provide 16 weeks of base pay along with two additional weeks of pay for every year of service, with no cap. It will also cover the cost of healthcare for the leaving workers as well as for their family members for six months.
Workers who are on the visa will be provided a notice period before termination and some amount of visa grace periods so they can plan and resolve their immigration status. Immigration specialists will assist workers during the process, Zuckerberg added.
Zuckerberg also explained that the company has been forced to make these changes as the revenue outlook is lower than expected at the beginning of this year. “We want to make sure we’re operating efficiently across both family of apps and Reality Labs,” he added.
Earlier known as Facebook Inc, Meta changed its name last year to reflect its commitment to becoming a metaverse company. According to reports, Meta has invested billions of dollars into the metaverse project and the Reality labs, which is at the centre of it.
Last month, the company reported a 4% decline in revenue during the third quarter, while net income fell by 52% year-on-year (YoY).
Most of the leading social media platforms are going through a slump. Last week, Twitter’s new owner Elon Musk slashed half of the company’s over 7,000 workforces. Snapchat parent Snap Inc is also planning to let go close to 20% of its over 6,400 employees, according to a report in the Verge.