The year 2022 has not been rosy for tech giants and startups. Reports showed that about 44,000 tech workers had lost their jobs— with expectations that in the coming days, more companies will downsize.
Furthermore, companies such as SoundCloud, Tesla, Netflix, and Coinbase have announced layoffs in recent months. They attribute the reasons for this massive layoff in the tech ecosystem to the aftermath of the pandemic. Other reasons include rising inflation and the crypto bear market, among others.
It is worthy of note that Meta has become the latest tech giant to lay off a huge number of its staff.
Mark Zuckerberg, the CEO of Meta (Facebook's parent company), announced the "most difficult" change in the company's history. He considers the sacking of 11,000 employees as necessary at this critical time.
Mark Zuckerberg said in his address to the employees, "I've decided to reduce the size of our team by about 13%. I will let more than 11,000 of our talented employees go."
Furthermore, he said he views layoff as a last resort and has decided to rein in other cost sources. He said the layoff and other adjustments would lead to a meaningful cultural shift in how Meta operates.
Mark Zuckerberg attributes these changes to two reasons. He said, "our revenue outlook is lower than we expected at the beginning of this year. Therefore, we want to make sure we're operating efficiently across both Family of Apps and Reality Labs."
He ended the announcement on how Meta aims to move forward. He said, "This is a sad moment, and there's no way around that. To those leaving, I want to thank you again for everything you've put into this place."
Furthermore, Mark Zuckerberg took responsibility for the error that eventually led to the massive layoff. He said they made increased expenditures during the COVID digital boom. However, they never materialized due to a shift in the industry. He said revenues have also dropped due to a financial slump, increased competition, and ad signal loss.
Meta's massive layoff comes shortly after the rumor filtered out. It is, however, shocking that it will affect a total of 11,000 workers. Telegraph Business tweeted that it is the largest cull in the company's 18 years history.
Industry players describe the situation as necessary for Meta to stay afloat. Similarly, there are expectations that other tech giants will sack more workers putting the labor market in a mess.
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