Mark Zuckerberg fires 11,000 Meta employees but persists with his Metaverse

Meta (Facebook, Instagram, WhatsApp) will separate with 11,000 employees. Mark Zuckerberg says he “takes responsibility”.

Today I have to share with you one of the most difficult changes we have had to make in Meta’s history.“The blog post by Mark Zuckerberg, boss of the Facebook parent company, confirmed this November 9, 2022 information that was already hanging on the multinational: Meta will lay off 11,000 people, or 13% of its total employees.

We will also take a number of additional steps to become a leaner and more efficient company by reducing discretionary spending and extending the hiring freeze to the first quarter. “, We can read in the post.

This is the first time in the company’s history, since 2004, that Meta (formerly Facebook) has had to fire so many people at once, Verge notes.

Meta reportedly underwent too many investments during the covid

Also according to the founder of Facebook, Meta would have invested a lot to hire employees during the covid crisis: “ In the early days of covid, the world moved quickly online, and the rise of e-commerce led to massive revenue growth. Many predicted that this would be a permanent acceleration that would continue after the pandemic ended. This was my case and therefore I decided to considerably increase our investments. Unfortunately it did not go as I expected. “, We can read.

Not only has e-commerce returned to previous trends, but the macroeconomic recession, increased competition and the loss of advertising signals have caused our revenue to drop from what I expected. I was wrong and I take responsibility for it.

The metaverse is expensive, very expensive

In July 2022 Meta recorded a decline in turnover for the first time. Three months later, the company announced quarterly losses of $ 600 million more than expected.

It must be said that since last year and since the announcement of Meta’s name change, Mark Zuckeberg’s company has decided to focus everything on the Metaverse, a concept that has remained vague for now, of an alternative virtual world in which we would interact in 3D. with other avatars and unreal objects. It would be advisable to go there with virtual or mixed reality headsets: it is for this reason that Meta currently relies heavily on its Meta Quest Pro, which we have recently tested.

However, Meta seems determined to continue. In Zuckerberg’s letter we read: We have shifted more of our assets to fewer high-priority growth areas, such as our AI research, our advertising and commercial platforms, and our long-term vision for the metaverse.. “

The Meta logo // Source: Nino Barbey for Numerama

Tech companies are sending it back with a vengeance

It’s an earthquake that’s not unique in the tech world – in recent months, many companies (except Apple) have announced workforce reductions, such as Snapchat or Salesforce. The last one was a little different: Twitter woke up with 50% fewer employees in 24 hours after the historic takeover by Elon Musk.

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