Home/ News / World/  Meta's mega layoff: ‘There are two reasons…’ admits Mark in 10 point defence

Facebook's parent company, Meta has decided to layoff 13% of its staff members, amounting to 11,000 employees to become a ‘leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1,’ according to Founder Mark Zuckerberg.

Taking accountability for these decisions and for how we got here, Mark apologised to those impacted in a note sent out to his 47,000 employees to gave away reasons and the steps ahead:

1- Wrong assumption of the online landscape

'Post Covid world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. However, trends returned to prior trends

2- Wrong business decisions

Based on incorrect assumptions Meta significantly increases its investments, but the macroeconomic downturn, increased competition, and ads signal loss caused Meta's revenue to be much lower than expected. 

3- The Apology and 2 reasons

‘I got this wrong, and I take responsibility for that.’ Zuckerberg apologised

“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," he added.

4- Need to become Capital efficient

'We’ve shifted more of our resources onto a smaller number of high priority growth areas — like our AI discovery engine, our ads and business platforms, and our long-term vision for the metaverse. We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint. We’re restructuring teams to increase our efficiency,' Mark states

5- Layoffs: The ground rules

'There is no good way to do a layoff,' Mark accepted and cleared what employees will accept.  Everyone will get an email soon letting them know what this layoff means for them. After that, every affected employee will have the opportunity to speak with someone to get their questions answered and join information sessions.

6- What will the laid-off employees get

Meta will pay 16 weeks of base pay plus two additional weeks for every year of service, with no cap. 

The company will pay for all remaining PTO time. 

Everyone impacted will receive their November 15, 2022 vesting.

Meta will cover the cost of healthcare for people and their families for six months.

Meta will also provide three months of career support with an external vendor, including early access to unpublished job leads.

7- Immigration Support

For the non-US employees who have been working at Meta there will be 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. Dedicated immigration specialists will help guide laid off employees. Similar provision will be provided to those outside the US with separate processes that take into account local employment laws.

8 - A day to bid adieu

Mark clarified, ‘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 everyone can say farewell.’

9 - Cost Cutting and Hiring Freeze

Meta has reined in other sources of cost before letting teammates go. the company will shrink real estate footprint, transition to desk sharing for people and other cost-cutting changes.

Company has extended hiring freeze through Q1 with a small number of exceptions. Mark will be overseeing business performance, operational efficiency, and other macroeconomic factors to determine whether and how much we should resume hiring at that point. 

10- An emotional note

"This is a sad moment, and there’s no way around that. To those who are leaving, I want to thank you again for everything you’ve put into this place.

To those who are staying, I know this is a difficult time for you too. Not only are we saying goodbye to people we’ve worked closely with, but many of you also feel uncertainty about the future. I want you to know that we’re making these decisions to make sure our future is strong.

I believe we are deeply underestimated as a company today. Billions of people use our services to connect, and our communities keep growing. Our core business is among the most profitable ever built with huge potential ahead. And we’re leading in developing the technology to define the future of social connection and the next computing platform. We do historically important work. I’m confident that if we work efficiently, we’ll come out of this downturn stronger and more resilient than ever."

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Updated: 09 Nov 2022, 05:47 PM IST
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