Meta, the parent of Facebook, Instagram and WhatsApp, is laying off 13% of its staff, or more than 11,000 employees because the company’s costs and expenses jumped in the third quarter to $22.1 billion. It’s the most significant job cuts in the tech giant’s history. Investors have been concerned about Meta’s rising costs and expenses.CEO Mark Zuckerberg announced this decision in a letter to employees Wednesday. “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,” he said. Meta is making reductions in every organization but „ome teams will be affected more than others.” The company also introduced a hiring freeze with a few exceptions. Impacted employees will receive 16 weeks of pay plus two additional weeks for every year of service.
Meta counts more than 87,000 employees as of the end of September. „Fundamentally, 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, ” Zuckerberg finally concluded. He added the company expects to “roll out more cost-cutting changes” in the coming months. Meta’s core ad sales business has been hit by privacy changes implemented by Apple, advertisers tightening budgets and heightened competition from newer rivals like TikTok.