Today, Meta’s CEO Mark Zuckerberg announced the company will lay off about 13% of its workforce, more than 11,000 employees, to “become a leaner and more efficient company by cutting discretionary spending and extending hiring freeze through Q1.” This announcement comes amid slow revenue this year due to increased competition and ads signal loss.
In his letter to employees, Zuckerberg talks about the COVID-19 pandemic and how “the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. While Meta’s CEO thought this would become a trend, he now admits 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.”
