It happened! Heads are rolling on Facebook. 11,000 will lose their jobs. people. Mark Zuckerberg: I ​​was wrong

Meta, owner of i.a. Facebook and Instagram, has just launched the largest job cuts in the company’s 18-year history. The company’s founder and CEO, Mark Zuckerberg, announced the group layoffs on Wednesday. Thus, earlier reports of the “Wall Street Journal” were confirmed,

employees of the company find out about the redundancies by e-mail, and the company cuts off their access to the internal systems they used with immediate effect.

[…] macroeconomic slowdown, increased competition and loss of advertising stimulus have resulted in our revenues being much lower than expected

– wrote Mark Zuckerberg in a letter to employees of the company.

I made a mistake and I take responsibility for it

– added. The problem is that this responsibility fell not only to Zuckerberg.

The American concern currently employs about 87,000 people. 13 percent exemption 11,000 employees will leave the company. So we are talking about a gigantic scale of exemptions, which is extremely rare in the case of giants from Silicon Valley.

Meta is sinking in the stock market. Zuckerberg burns money

There has been talk of layoffs at Meta for several months now, as the entire tech industry is having financial problems after the pandemic. At the end of October, the company showed the results for the third financial quarter of 2022. To say they are terrible is to say nothing. Net profit amounted to USD 4.4 billion and turned out to be as much as 52 percent higher than in the previous year. lower compared to the same period last year.

The company is dragging down declining ad revenue. In the last quarter, advertising revenues of Meta Platforms (which includes Facebook, Messenger, WhatsApp and Instagram) fell from $28.28 to $27.24 billion. While the number of views of the ads themselves increased, their average price decreased by 18%.

Even worse are the results of Reality Labs, the department responsible for creating the metaverse, i.e. the virtual world in which, as Mark Zuckerberg claims, we will live and work in the future.

In the last quarter, Reality Labs revenue decreased from $558 to $285 million, and the operating loss increased from $2.64 billion to as much as $3.67 billion, which is a record high. In total, only this year, projects implemented by Reality Labs “burnt out” as much as USD 9.4 billion, and it is not expected that this branch will suddenly start generating a profit in the coming quarters.