San Francisco: Facebook group Meta lays off 11,000 employees

updated

San FranciscoFacebook group Meta lays off more than 11,000 employees

Bang at Meta: About 13 percent of the workforce is being laid off in the biggest job cuts in Facebook history.

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More than 11,000 employees will be laid off at Meta.

IMAGO/ZUMA wire

Facebook group Meta is laying off more than 11,000 employees in the biggest layoff in its history. That’s about 13 percent of the workforce, CEO Mark Zuckerberg said Wednesday. He pointed out that he had overestimated the online boom at the start of the coronavirus pandemic and therefore increased investment. But now online business has returned to earlier trends – and a weakening economy and increased competition are also weighing on revenue. Takes responsibility for decisions and their consequences.

Meta’s problem is that its core business of advertising on online services such as Facebook and Instagram is generating less revenue than before. At the same time, the development of virtual worlds promoted by founder and CEO Mark Zuckerberg under the keyword Metaverse is eating up more and more money. Zuckerberg recently announced that Meta’s headcount can no longer grow at the moment and could also be reduced next year as the group focuses on fewer areas.

The share price has been under pressure for months

In the last quarter alone, Reality Labs, the division that works on Metaverse, reported an operating loss of nearly $3.7 billion. It has accumulated a deficit of $9.4 billion since the beginning of the year – with sales in the region of $1.4 billion. And Zuckerberg announced that Reality Labs’ losses will “grow significantly” next year.

The decline in sales accelerated. Meta is influenced by the frugality of advertisers who are spending less money on online ads in the face of high inflation and economic concerns. Meta’s revenue fell 4% year over year to $27.7 billion. All told, profits fell 52 percent to about $4.4 billion. The share price has been under pressure for months as investors view Metaverse’s investment as too high.

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(dpa/fos)

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