Meta to Lay Off 11,000 Employees

In a major restructuring effort, Meta has announced that it will be reducing its workforce by 13%, equivalent to approximately 11,000 employees, as reported by Variety. The announcement was made via an early morning email, with individual staff members learning their fate throughout the day. According to Mark Zuckerberg, Meta's CEO, the company's recent investments were based on the assumption that the growth experienced in 2020 and 2021 would be a long-term trend. However, this growth did not materialize as expected. "The reality is that the pandemic-driven boost did not translate into lasting momentum," Zuckerberg explained. "Instead, we've seen a return to pre-pandemic online shopping patterns, coupled with a downturn in the global economy, increased competition, and a decline in ad revenue. I must take responsibility for misjudging these trends." In addition to the layoffs, Meta will be extending its hiring freeze, reducing budgets, and cutting back on non-essential expenses. Nevertheless, the company remains committed to investing in key areas such as AI, advertising, and its metaverse ambitions. Notably, the Reality Labs division, which is driving Meta's metaverse vision, has accumulated over $30 billion in operating losses since 2019.