New Delhi: Meta CEO Mark Zuckerberg in a letter on Wednesday confirmed to start laying off 11,000 employees globally which accounts around 13% staff. The layoff decision has been come amid faltering revenue growth and a slump of its shares in recent weeks.
While sharing the annoucement of layoff, Meta CEO Mark Zuckerberg wrote, “oday 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% and let more than 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1.”
However, the company has announced some compensation for fired employees.
What are all compensations for firing employees?
As for severance allowance, Meta will pay 16 weeks of base pay plus two additional weeks for every year of service, with no cap. Moreover, the company will cover the cost of healthcare for people and their families for six months.
The company is planning to provide three months of career support with an external vendor, including early access to unplublised job leads. To provide immigration support, there’a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status.
Zuckerberg mentioned that outside the US, the company will provide the similar support along with separate processes that take inot account local employement laws.
What other changes is Meta making?
Mark said that layoff was the last resort to club down the company’s expenses. Meta has decided to shrink down real estate footprint by transitioning to desk sharing for people who already spend most of their time outside the office. There are more cost-cutting plans in the coming months.
It is also freezing hiring with a small number of exceptions.
Mark said, “we’re making all these changes for two reasons: our revenue outlook is lower than we expected at the beginning of this year, and we want to make sure we’re operating efficiently across both Family of Apps and Reality Labs.”