Facebook CEO Mark Zuckerberg took responsibility for the layoffs. “I’ve decided to reduce the size of our team by about 13 percent and let more than 11,000 of our talented employees go. 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,” Zuckerberg told Meta employees in an email.
Talking about how the company got to this point, Zuckerberg attributed the cuts to growing too quickly during the pandemic. He said that he thought the shift would be permanent, leading him to significantly increase spending. Meta’s number of employees at the end of September stood at around 87,000, 28% higher than a year earlier.
Zuckerberg also announced a slew of cost cutting measures. He said that budgets would be reduced, and the company would cut back on real estate. The hiring freeze announced earlier too has been extended until March. “We’re also extending our hiring freeze through Q1 with a small number of exceptions. I’m going to watch our business performance, operational efficiency, and other macroeconomic factors to determine whether and how much we should resume hiring at that point. This will give us the ability to control our cost structure in the event of a continued economic downturn,” Zuckerberg said.