Facebook parent company Meta has announced plans to lay off more than 11 thousand employees, the biggest round of cuts in company history. The layoffs are part of the company’s effort to refocus its workforce on priorities and cut expenses. In addition to layoffs, Meta is implementing hiring freezes and eliminating nonessential travel. The layoffs will start this week, and will affect around 13% of Meta’s workforce.
The company is giving affected staff members severance pay worth 16 weeks’ base pay, plus an extra two weeks for each year of service. In addition, it will cover healthcare costs for affected employees for six months. The company is also promising to help laid-off employees find new positions. It has contracted with a third party to offer job listings. Additionally, it will provide support for employees on visas through dedicated immigration specialists. It will also pay for six months of health insurance for employees who are moving to different countries.
While layoffs are not unusual in this time of recession and slowing growth, they are a difficult time for companies with large staffs. However, companies must reduce costs to remain competitive in the current economy. Layoffs are a fast way to cut costs but do not make the process any easier for the employees.
Although Meta’s revenue was higher than expected in the past year, the company is now facing a number of challenges. Its revenue is lower than anticipated as a result of the COVID virus, increased competition, and difficult conditions in online advertising. Despite these challenges, Meta is focusing its resources on “high priority growth areas” and restructuring teams to increase efficiency. However, this will not be enough to avoid layoffs.
The layoffs at Meta signal an increased competitive environment. The company faces increasing competition from TikTok, which has become popular among younger generations. The stock has already lost over 70% of its value this year. It is one of several tech companies that have cut staff to survive the economic downturn. Snap, Twitter, and Salesforce have also made massive reductions in their workforces.
The layoffs are a massive blow for the company. They represent around 13 percent of the company’s workforce. The layoffs will affect almost every aspect of the company. The company’s CEO, Mark Zuckerberg, said that the decision was an opportunity to take responsibility for the situation.