The company Goalowner of Facebook, WhatsApp and Instagramrose this Wednesday in the stock market by 6.7% hours after announcing the largest wave of layoffs in its history, with 13% of its workforce affected.
Two hours after the New York Stock Exchange opened, shares of Meta were trading at $102.92, with a rise of 6.69%, but in the course of the year they have fallen by 70%.
The layoffs were announced in a statement from Mark Zuckerberg himself.creator of Facebook and Meta, who took personal responsibility for the decision and said it was one of the most difficult in the company’s history.
It might interest you: Zuckerberg lays off 11,000 Meta workers, the company’s largest cut in 18 years
These layoffs, according to the head of Meta, aim to achieve a more agile and efficient company and respond to the changes that have occurred in the economic and business environment. Those affected will receive an email to inform them of their situation.
Goodbye to Covid-19 and also to Meta employees
The covid pandemic, says the company’s CEO, caused a significant increase in electronic commerce and “an enormous growth in income”, which has subsequently not been maintained.
Many people predicted that this would be a permanent acceleration that would continue even after the pandemic was over. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not turn out as expected,” he adds.
Now, the macroeconomic recession, the increase in competition and the loss of advertisers have caused, according to Zuckerberg, that the income “is much lower than I expected.” “I was wrong and I take responsibility for it”he expressed.
The head of Meta recognizes that the company has to focus on a smaller number of sectors, reduce costs and prioritize some units such as the one oriented to the Artificial Intelligence engine.
The US employees affected by the layoffs – it is still unknown how they will be distributed in a global workforce of 87,000 people – will receive 16 weeks severance payplus two additional weeks per year worked.
Zuckerberg also announced that the company will cover his medical costs for six months, and said that outside the United States the support would be similar, although the laws in each country will determine the scope of those compensations.
The last:
EFE International news agency based in Madrid and present in more than 110 countries.