This weekend, reports suggested that Facebook and Instagram’s parent company Meta was preparing to make significant layoffs. Today, the company has confirmed those reports, with details.
“Today I’m sharing some of the most difficult changes we’ve made in Meta’s history. I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go,” wrote CEO Mark Zuckerberg in an email to staff, which has also been published on Meta’s online newsroom.
“We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1.”
In his email, Zuckerberg also outlined the reasoning behind the layoffs, saying that like other technology companies, Meta assumed that the rapid growth of e-commerce and other online habits during Covid-19 lockdowns would “be a permanent acceleration” that would last beyond the pandemic.
“Unfortunately, this did not play out the way I expected. 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. I got this wrong, and I take responsibility for that,” he wrote.
Meta employees who are being laid off will be contacted today. Like Twitter, the company is walking something of a tightrope in terms of how it treats those departing colleagues.
“We made the decision to remove access to most Meta systems for people leaving today given the amount of access to sensitive information. But we’re keeping email addresses active throughout the day so everyone can say farewell,” wrote Zuckerberg.
With the news only just having been announced, it’s unclear how the layoffs and cost-reductions will affect the teams within Meta and its subsidiaries who focus on music. We’ll update this story if and when we know more about that.
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