Disclaimer: This article may contain the personal views and opinions of the author.
We seem to be living in a time where we can bear witness to the decimation of Big Tech. Of course, and most saliently, Elon Musk has taken over Twitter and is making some changes, to put it mildly and euphemistically.
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Elsewhere in the world of Big Tech, social media giant Facebook has also announced some less than positive news.
This might just mean the beginning of the end. The fall of the proverbial wall for social media and Big Tech.
It is now being reported by Fox Business that:
Meta, the parent company of Facebook, announced Tuesday that it would lay off more than 11,000 employees.
“I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go,” CEO Mark Zuckerberg said in a letter to staff. “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.”
“I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted,” he said.
The billionaire wrote that, at the start of the pandemic, he and “many people” predicted that the surge of e-commerce would be a “permanent acceleration.”
Fox Business went on to report:
That led to the decision to significantly increased investments for Meta.
“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,” Zuckerberg said. “I got this wrong, and I take responsibility for that.”
Now, the Meta chief says the company needs to become more capital efficient, with an emphasis on cutting costs across the business — including reducing perks and its real estate footprint — and shifting resources into a smaller number of “high-priority growth areas.”
It was further reported by CNBC that:
“That means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year,” Zuckerberg said. “In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”
Meta counts more than 87,000 employees as of the end of September.
CNBC went on to report that:
Here’s Mark Zuckerberg’s letter to employees:
“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. 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.
I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.
It has certainly been an interesting couple of months for Facebook and its highly visible founder and CEO. the CEO of Meta has always been on the Forbes list since 2015, but this year he has lost more than half his fortune. Forbes reported, “Zuckerberg has lost more than half his fortune—a staggering $76.8 billion—since September 2021, dropping him from No. 3 on The Forbes 400 list of the U.S.’ wealthiest people to No. 11. Worth $57.7 billion on this year’s list, which used stock prices from September 2.”
The largest loss for Zuckerberg’s fortune came from the stock price of Meta plummeting 57% since last year.