Mass layoffs by parent companies Facebook and Instagram: More than 11,000 job losses

Meta, the parent company of Facebook and Instagram, is laying off more than 11,000 people. This was announced by CEO Mark Zuckerberg. This affects about 13 percent of the workforce, which currently has more than 87,000 employees.

It is not yet clear to what extent the layoffs will affect the Dutch office as well, a spokesperson has yet to say anything about it.

The Facebook founder talks about one of the most difficult changes in the company’s history. In a blog post, he says he takes responsibility for the decision. “I know it’s hard for everyone.”

The company has been under financial pressure for some time. The stock price has dropped more than 70 percent last year. In its most recent quarterly earnings, the company posted its lowest quarterly profit in five years late last month.

Seen wrong

Zuckerberg said the world suddenly started doing everything online during the coronavirus pandemic. It speaks openly of the sharp increase in demand for online orders. “Many predicted that this growth would continue post-pandemic. I thought so too and increased our investments.”

But now he says things are different. Zuckerberg points not only to the decline of online orders, but also to the uncertain economic situation, increased competition and disruptions in advertising revenues. “I misunderstood and I take responsibility for it.”

The company will email its employees today information about what this layoff means to them. Those who have to leave will be paid several months’ salaries, and Meta will pay health insurance for the next six months.

Employees fired will no longer have access to most internal systems because they contain sensitive information. Email addresses are active today so people can say goodbye to each other.