Mark Zuckerberg isn’t doing well with investors and analysts these days. Revenues are cratering, the stock price is falling, and there are questions about the company’s overall direction. This week, a lot of employees are going to pay the price.
Here’s Zuckerberg’s email to staff:
“Today 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.”
COVID-19 is also listed as an issue. Things were good while everyone was in lockdown, but now that things have eased, that acceleration of growth has reversed.
Zuckerberg: “Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.”
Layoffs started today.
“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.”