Employees at Meta, owned by Mark Zuckerberg, will be let go on Wednesday morning, according to the Wall Street Journal (WSJ). The CEO made the news on Tuesday morning in front of a large group of officials at the corporate headquarters, hinting at significant layoffs.
Though the exact number of people who will be asked to leave is unknown, the WSJ anticipates that thousands will be asked to do so, making this the biggest tech sector layoff of the year so far. In the company’s 18-year history, the layoff scheduled for this Wednesday would be the first such cut.
Zuckerberg admitted fault for the excess staffing
According to persons acquainted with the meeting, Lori Goler, head of human resources at Meta, has guaranteed that the laid-off workers will receive at least four months of pay as severance. At the meeting, Zuckerberg admitted fault for the excess staffing, which he blamed on his confidence in the company’s future growth.
He made explicit note of hiring and business unit layoffs. On Wednesday, the job cuts are anticipated to begin around 6 am Eastern time, with the exact employees who would lose their employment being informed throughout the morning.
Investors reduced Meta’s market value by $80 billion last month
In September, Meta stated that it currently has over 87,000 users. WSJ reports that business leaders had already instructed staff to postpone any non-essential travel starting this week.
Investors reduced the company’s market value by $80 billion last month after learning that third-quarter profits had been cut in half. On the heels of dismal third-quarter earnings results, Meta’s stock has dropped more than 70% this year. Its $230 billion market value decline in February was the largest one-day drop in US corporation history.
Snap Inc. said in August that it is seeking to lay off about 20% of its workforce
It should be noted that Meta is not the first tech company to have announced layoffs. Elon Musk, the new CEO of Twitter Inc., has let thousands of workers go as he works to restructure the business and boost income. In order to get ready for what it said would be an anticipated period of low sales growth lasting until 2023, Snap Inc., the company that owns Snapchat, said in August that it is seeking to lay off about 20% of its workforce, or more than 1,000 people.