Meta to Slash 11,000 Jobs, One of 2022's Biggest Layoffs
Meta Platforms Inc said on Wednesday it will let go of 13% of its workforce, or more than 11,000 employees, in one of the biggest layoffs this year as the Facebook parent battles soaring costs and a weak advertising market.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 said in a message to 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.
Impacted employees will also receive their shares that were set to vest on Nov. 15 and healthcare coverage for six months, according to the company.
Zuckerberg is among several top U.S. executives who have this year sounded the alarm on an upcoming recession.
Some of Meta's wounds, however, have been self-inflicted.
A pricey bet on metaverse, a shared virtual world, has seen the company forecast as much as $100 billion in expenses for 2023. That has drawn skepticism from investors who are losing patience with investments that Zuckerberg himself expects a decade to bear fruit.
The company is also grappling with stiff competition from TikTok and privacy changes from Apple Inc, while being in the crosshairs of regulators around the globe.
Meta had 87,314 employees as of the end of September.
And some folks may not understand the level of magnitude of what is considered a robot.
My job at work has become creating robots to do the accountants tedious work. Leadership's goal is to have robots completing the accounting tasks and we are on that course.
Tech companies rocked by layoffs as industry faces biggest downturn in 2 decades
Salesforce is laying off about 10% of its workforce, more than 7,350 employees, in the latest round of job cuts in the tech industry as corporations cut back on software and other spending.
The San Francisco cloud computing software company will also be closing some offices, according to a regulatory filing Wednesday.
"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," said CEO Marc Benioff in a letter to employees. "With this in mind, we've made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks."
Benioff said employees being released will receive nearly five months of pay, health insurance, career resources and other benefits.
Salesforce is laying off about 10% of its workforce, more than 7,350 employees, in the latest round of job cuts in the tech industry as corporations cut back on software and other spending.
The San Francisco cloud computing software company will also be closing some offices, according to a regulatory filing Wednesday.
"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," said CEO Marc Benioff in a letter to employees. "With this in mind, we've made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks."
Benioff said employees being released will receive nearly five months of pay, health insurance, career resources and other benefits.
Amazon is doing another round in Seattle. At this rate I might be able to afford my old house.
www.king5.com
Amazon announces another wave of layoffs, eliminating over 18,000 positions in 3 months
Mass layoffs are rare at Amazon, but the company has had rounds of job cuts in 2018 and in 2001 during the dot-com crash.
www.king5.com
5th January
AmazonJob losses: Around 18,000 staff
Amazon has blamed a staff leak on having to announce huge redundancies earlier than expected, with 18,000 at the company expected to lose their jobs. Amazon has yet to announce which areas these cuts will affect. It marks another in a long line of job losses at the company, with 10,000 roles being made redundant less than two months ago.
10th January
CoinbaseJob losses: Around 950 staff
Crypto firm Coinbase announces that it is closing 950 roles in a blog post, equalling 20% of its entire workforce. In a statement, CEO Brian Armstrong said that the cuts were necessary to ensure that Coinbase was able to succeed in 2023. He went on to say “While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount.”
Coinbase had previously issued mass redundancies in June 2022, leading to around 1,100 job losses.
But there’s a a raging mutha fugga of a skills gap. What’s coming is going to make The Great Depression look like a parlor game. The ones who survived that crap show had skills and lived hand to mouth. Scraps and leftovers may leave the lexicon.
a wage spiral is forming........
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