The Facebook parent Meta Platforms Inc (META.O) said on Wednesday it would cut more than 11,000 jobs, or 13% of its workforce, as it doubled down on its risky metaverse bet amid a crumbling advertising market and decades-high inflation, Reuters reported.
This comes soon after job cuts at Elon Musk-owned Twitter, and Microsoft Corp.
The mass layoffs are the first in Meta’s 18-year history.
“At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration… I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected. 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,” read CEO Mark Zuckerberg’s letter to employees.