#ZUCKERBERG STAFF META STOCK PLUNGES PLUS#

In this new environment, we need to become more capital efficient. I got this wrong, and I take responsibility for that. 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. Unfortunately, this did not play out the way I expected. I did too, so I made the decision to significantly increase our investments. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I know this is tough for everyone, and I'm especially sorry to those impacted.Īt the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. I want to take accountability for these decisions and for how we got here. 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. I've decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go. 'Today I'm sharing some of the most difficult changes we've made in Meta's history. Here's Mark Zuckerberg's letter to employees: Meta counts more than 87,000 employees as of the end of September. 'In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.' 'That means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year,' Zuckerberg said. Zuckerberg said during a call with analysts as part of its third-quarter earnings report that Meta plans to 'focus our investments on a small number of high priority growth areas' during the next year. This hefty bet has cost Meta $9.4 billion so far in 2022, and the company anticipates that losses 'will grow significantly year-over-year.' Meta is heavily investing in the metaverse, which generally refers to a yet-to-be developed digital world that can be accessed by virtual reality and augmented reality headsets. Meta will cover health insurance for six months.

#ZUCKERBERG STAFF META STOCK PLUNGES PLUS#

Impacted employees will receive 16 weeks of pay plus two additional weeks for every year of service, Zuckerberg said. To those who are leaving, I want to thank you again for everything you've put into this place,' he added. 'This is a sad moment, and there's no way around that. The company extended its hiring freeze through the first quarter with a few exceptions, Zuckerberg said. He said Meta is making reductions in every organization but that recruiting will be disproportionately affected since the company plans to hire fewer people in 2023. I know this is tough for everyone, and I'm especially sorry to those impacted.' Zuckerberg said. 'I want to take accountability for these decisions and for how we got here. The company's overall sales declined 4% to $27.71 billion in the quarter while its operating income dropped 46% from the previous year to $5.66 billion.

Investors have been concerned about Meta's rising costs and expenses, which jumped 19% year over year in the third quarter to $22.1 billion.

The layoffs come amid a tough time for Facebook parent company Meta, which provided lukewarm guidance in late October for its upcoming fourth-quarter earnings that spooked investors and caused its shares to sink nearly 20%. Shares of Meta were up about 7.7% Wednesday morning. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

Zuckerberg staff meta stock plunges