In a call with hundreds of executives on Tuesday, Facebook founder Mark Zuckerberg, 38, announced cuts of around 13% of the company’s workforce due to soaring operating costs and a declining advertising market. Employees were then notified of the layoffs via a company-wide email sent at 6 a.m. EST, with employees told they could access their email addresses for an extra day to say goodbye.
Mark wrote in his lengthy letter to the staff: “Today I’m sharing some of the most difficult changes we’ve made in Meta’s history. I’ve decided to reduce the size of our team by about 13 percent and let more than 11,000 of our talented employees go. We are also taking several additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1. I want to take accountability for these decisions and how we got here. I know this is tough for everyone, and I’m sorry for those impacted.”
“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 even after the pandemic ended. I did too, so I made the decision to significantly increase our investments.”
“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.”
Mark continued saying he wanted to make the company “more capital efficient”: “There is no good way to do a layoff, but we hope to get all the relevant information to you as quickly as possible and then do whatever we can to support you through this. Everyone will get an email soon letting you know what this layoff means for you. After that, every affected employee will have the opportunity to speak with someone to get their questions answered and join information sessions.”
“We made the decision to remove access to most Meta systems for people leaving Today, given the amount of access to sensitive information. But we’re keeping email addresses active throughout the day so that everyone can say farewell.”
As part of its severance package, Meta announced it would compensate 16 weeks of base pay with an additional two weeks for every year of service.
Mark has invested more than $36 billion in his Metaverse project, but over $30 billion has vanished in months, leaving his net worth at $88 billion.