Meta Platforms (META) is laying off 13% of its staff, or more than 11,000 employees, as losses
mount at the technology company.
In a letter to all staff, Meta Platforms’ chief executive officer (CEO) Mark Zuckerberg said: “I’ve
decided to reduce the size of our team by about 13% and let more than 11,000 of our talented
employees go.”
The layoffs come amid a difficult financial time for Meta, which recently provided lukewarm
guidance for the current fourth quarter that caused its shares to plummet 20%.
Investors have been concerned about Meta’s rising costs and expenses, which jumped 19% in
third quarter to $22.1 billion U.S.
At the same time, Meta’s sales declined 4% to $27.71 billion U.S. in Q3 while its operating
income fell 46% from the previous year to $5.66 billion.
Zuckerberg added in his note to staff that Meta plans to hire fewer people in 2023.
Impacted employees will receive 16 weeks of pay plus two additional weeks for every year of
service. Meta Platforms will also cover impacted staff’s health insurance for six months.
Meta is heavily investing in the metaverse, a virtual reality realm that is largely theoretical at this
point. The company has spent $9.4 billion U.S. on metaverse technologies so far this year.
Meta Platforms had more than 87,000 employees worldwide at the end of September.
The company’s stock has declined 72% this year and is now trading at $96.47 U.S. per share.