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Zuckerberg Set to Cut Thousands Of Jobs In One Of 2022’s Largest Layoffs

    It was announced on Wednesday that Meta Platforms Inc. would be letting go of a whopping 13 percent of its workforce, which is equal to 11,000 employees, in what is shaping up to be one of the largest layoffs this year as the parent company of social media giant Facebook continues to do battle with soaring costs and a very poor advertising market.

    Here’s more on this from Newsmax:

    The mass layoffs, first in Meta’s 18-year history, follow thousands of job cuts at other major tech companies including Elon Musk-owned Twitter and Microsoft Corp. The pandemic-led boom that boosted tech companies and their valuations has turned into a bust this year in the face of decades-high inflation and rapidly rising interest rates.

    “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,” Chief Executive Officer Mark Zuckerberg went on to say in a message to company’s employees. “I got this wrong, and I take responsibility for that.”

    Meta, whose shares have lost more than two-thirds of their value so far this year, rose nearly 3% before the bell. The company also plans to cut discretionary spending and extend its hiring freeze through the first quarter. But it did not disclose the expected cost savings from the moves.

    Meta will pay 16 weeks of base pay plus two additional weeks for every year of service, as well as all remaining paid time off, as a part of the severance package, the company said.

    Meta’s shares have lost more than two-thirds of their value this year, though the company did manage to go up almost 3 percent before the bell. The report says the company is also planning to cut a big chunk of discretionary spending and extend its hiring freeze through the first quarter of the new fiscal year. However, they did not reveal the expected cost savings from these decisions.

     

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