Meta, parent company of Facebook, cuts 11,000 jobs

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Meta, company ; mother of Facebook, cuts 11 000 jobs

Meta, the parent company of Facebook, made significant job cuts on November 9.

The ax falls on the side of Meta, parent company of Facebook and owner of& #x27;Instagram and WhatsApp. The Californian company is cutting more than 11,000 jobs, which represents 13% of its staff.

It's one of the biggest mass layoffs at a tech company this year.

I want to take responsibility for those decisions and how we got here. I know this is difficult for everyone, and I'm especially sorry for those affected, said company boss Mark Zuckerberg.

Meta, which had some 87,000 employees worldwide at the end of September, is battling soaring costs and a weak advertising market. elsewhere a painful year on the NASDAQ stock exchange. It has fallen 71.5% since Jan. 1 and reported a disappointing financial performance in the third quarter with a sharp decline in revenue and flat user numbers. Mark Zuckerberg then announced that the numbers of his group could decrease.

Meta does not immediately specify the geographical distribution of the job cuts.

It has however already been announced that employees laid off in the United States will receive 16 weeks base salary and two additional weeks of salary for each year of service. The company will cover their health insurance for 6 months.

“It's a sad moment and there's no getting around it. To those leaving, I want to thank you once again for all of your contributions.

— Mark Zuckerberg, CEO of Meta

The CEO of Meta points in particular to erroneous market predictions at the start of the COVID-19 pandemic. “The whole world has rapidly turned to the web and the rise of e-commerce has led to outsized revenue growth. Many predicted that it would be permanent growth that would go beyond the pandemic.

“I believed in it too, so I made the decision to increase our investments considerably. Unfortunately, it didn't turn out the way I expected.

— Mark Zuckerberg, CEO of Meta

Meta, which is undergoing its first restructuring in its 18-year history, plans to cut discretionary spending and extend its hiring freeze through the first quarter.

Times have already been better for companies in the technology sector. Twitter announced last week the loss of 50% of the group's jobs worldwide, or around 7,500 people, following the takeover of the company by Elon Musk.

Two Silicon Valley companies, Stripe and Lyft, also reported sweeping layoffs last week, while Amazon froze office hiring.

At the end of August, Snap, the parent company of the Snapchat application, cut approximately 20% of its workforce, or more than 1,200 employees.

The pandemic, which has propelled technology companies and their valuation on the stock market, turned into a crisis this year in an inflationary environment and rising interest rates in several countries.

With information from Reuters, and  Agence France-Presse

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