Mark Zuckerberg acknowledges his errors contributed to Meta’s difficulties as he apologizes for the need to lay off so many employees as part of broader efforts to reduce costs and concentrate the firm.
The company stated on Wednesday that it will reduce its global workforce by more than 11,000 personnel as part of a broader reorganization designed to substantially reduce expenses while maintaining controversial investments in the metaverse.
Due to concerns around access to sensitive information, the corporation stated that people losing their positions would be excluded from the majority of its systems as of today.
Those affected in the United States would get at least 16 weeks’ pay in compensation, plus an additional two weeks for each year of service.
Zuckerberg “accepts responsibility
As part of the restructuring, several office locations were to be closed around the world, and desk-sharing agreements were to be implemented in their place.
Staff benefits were also decreased.
He conceded that his development plans had been overly optimistic, stating, “I was incorrect” when describing how Meta had gambled on ongoing high demand for e-commerce through its investments following the COVID pandemic’s greatest outbreak.
Some of the declines are attributable to falling ad sales across its platforms.
In his email to staff, he indicated an ongoing investment commitment to the division.
“Recruiting will be significantly impacted by our intention to hire fewer personnel next year.
Additionally, we are revamping our business teams dramatically.
He said, “The departing coworkers are talented and devoted, and have had a significant influence on our company and community.
Susannah Streeter, the senior financial and markets analyst at Hargreaves Lansdown, said: “Mark Zuckerberg’s admission that he overestimated the company’s prospects is unlikely to reassure investors. Instead, they may be more unsettled.
“He may have accepted responsibility for the current situation, but he continues to speak in terms of allocating resources to high-priority growth sectors, and the metaverse remains on that list.”