Mark Zuckerberg admits he got it wrong as Meta lays off 11,000 people

midian182

Posts: 8,484   +104
Staff member
What just happened? It's been announced by Meta CEO Mark Zuckerberg that the company is laying off 13% of its staff, or around 11,000 workers worldwide, confirming rumors from earlier this week that huge cuts were coming.

In a letter sent to Meta employees earlier today, Zuckerberg wrote: "Today I'm sharing some of the most difficult changes we've made in Meta's history." In addition to the 11,000+ employees being let go, the CEO talked about taking additional steps to become a leaner and more efficient company, including extending its hiring freeze through the first quarter of its fiscal financial year and cutting discretionary spending. Meta's hiring division is expected to be the group most heavily affected by the move.

"I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I'm especially sorry to those impacted." Zuckerberg said.

Meta's value has fallen by around half a trillion dollars over the last 12 months. Net income in Q3 was down 52% to $4.4 billion, lower than analysts' estimates of $5 billion, while revenue was down 4% to $27.71 billion. Investors have looked on with concern as the social media giant pours more billions into Reality Labs, the division responsible for its metaverse ambitions, all of which led to rumors of major job cuts.

There has been a slew of tech companies laying off employees this year as they deal with the global economic downturn and advertisers reining in their spending. Lyft, Microsoft, Snap, Tesla, and Robinhood are just some of the big names to let go of staff recently. Twitter has also cut its headcount by half, though that's at Elon Musk's behest, and the lack of notice has led to another employment lawsuit for the world's richest person.

Meta is giving its laid-off employees in the US 16 weeks' severance pay along with two additional weeks for every year of service (without a cap). The company will also cover their health insurance for six months and offer RSU vesting, career services, remaining paid time off, and immigration support for staff with visas. Zuckerberg added that those affected will have their system access cut off immediately, "given the amount of access to sensitive information."

Zuckerberg is taking on much of the blame for the decision, noting that the tech boom brought about by the pandemic has not lasted the way he expected. "At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments," he wrote.

"Unfortunately, this did not play out the way I expected. 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."

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R00sT3R

Posts: 773   +2,403
What a weasel, nothing but crocodile tears.

If he was taking responsibility, he'd step down as CEO.

META is his baby and his baby alone, and its got them to where they are today and as usual its the 'little people' that have to pay for the mistakes of the so called 'smart people' in charge.

 

fps4ever

Posts: 1,111   +1,799
What a weasel, nothing but crocodile tears.

If he was taking responsibility, he'd step down as CEO.

META is his baby and his baby alone, and its got them to where they are today and as usual its the 'little people' that have to pay for the mistakes of the so called 'smart people' in charge.

Counting on COVID to never end and then doubling down on the "Metaverse" who could have seen that coming. /s
 

umbala

Posts: 797   +1,598
No announcing a cut in higher-ups pay (especially for himself)? All talk.
No, this is capitalism in all its glory. This is what happens with trickle down economics. We have to shovel all the money to the top dogs like Zucky because they create all the jobs and everything will "trickle" back down to the little people if only the richest could get a little richer. Oh wait....
 

psycros

Posts: 4,571   +6,881
This article doesn't say if Zuckerberg mentioned anything about metaverse plans in the future. I certainly hope he doesn't give up on it. I want it to be the biggest disaster in tech history so if he gives up on it now that will ruin the whole deal.

Exactly. Here's hoping he keeps pouring money into his pipe dream of Facebook being wired into people's brains so he can spy on and market them 24/7. Social media and Google can't die fast enough.
 

mctommy

Posts: 444   +169
As far as layoffs go, this one at least sounds like Zuckerberg is genuinely sorry to let people go (unlike layoffs at most other companies), and that severance package is not bad at all. Still sucks for those people, though.

That's very generous severance package for US standard. 5-year Meta employee would get 26 weeks + 6 months of health insurance! The other stuff is for the most part standard.
 

trparky

Posts: 1,159   +1,320
So what should he do ... not layoff anyone?
Resign? Step down? Vacate the position? That sure sounds like a better idea.

Face it, it was his stupid decisions that led to these people getting let go. He should also be shown the door. It's called putting your money where your mouth is. Owning up to one's mistakes. Talk is cheap, he needs to do something.
 

wiyosaya

Posts: 8,420   +7,856
Resign? Step down? Vacate the position? That sure sounds like a better idea.

Face it, it was his stupid decisions that led to these people getting let go. He should also be shown the door. It's called putting your money where your mouth is. Owning up to one's mistakes. Talk is cheap, he needs to do something.
Not many people, especially those with inflated head sizes due to the size of their bank account, know what it is to take personal responsibility.

Besides - Zuckerberg still thinks he has something in "The MetaVerse" 🤣

IMO, another action he could take - not accept a salary for the next five-years at least.
 

Avro Arrow

Posts: 3,363   +4,368
"'I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I'm especially sorry to those impacted.' Zuckerberg said."

Two questions:
1) What good does a lame apology like that do?
2) What does he mean "tough on everyone"?

He's sub-human trash and I'm sure that his "apologies" are of no comfort to the people whose lives he just turned upside-down. Stay tuned for his crocodile tears.