that group layoffs will start this week and will cover thousands of jobs. On Tuesday afternoon, this information was to be confirmed by Mark Zuckerberg himself during a meeting with the management of the company.
at Tuesday’s Zuckerberg conference “seemed depressed” and said that he wasis responsible for the company’s mistakes, and his over-optimism about its development has led to overstaffing.”
Group layoffs are due to start on Wednesday morning. Zuckerberg confirmed that they will include, among others: recruitment and business teams. it shows that even employees of the Reality Labs branch will lose their jobs, who is responsible for the design of the metaverse. This is all the more surprising because in recent months the metaverse has been the apple of Zuckerberg’s eye.
Meta currently employs around 87,000 people, and up to 10% of staff will be cut. These will be the biggest layoffs in the company’s 18-year history.
Meta’s head of human resources, Lori Goler, said those who lose their jobs will receive a severance pay of four months’ pay, the WSJ reported.
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. The net profit amounted to USD 4.4 billion and turned out to be as much as 52 percent higher than 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 division 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.
Since the beginning of the year, Meta shares on the New York Stock Exchange have fallen more than 70 percent.
Source: Gazeta
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
