The fate of the Meta Africa team hangs in the balance as the company on Wednesday announced 11,000 job cuts.
That’s 13% of its 87,000 global workforce, and it comes after Twitter fired 3,700 employees on Friday. Twitter’s layoffs affect most of its African teams, which have just resumed work at the company’s African offices in Ghana.
While it’s unclear how Meta’s layoffs will affect its African teams, a message from Meta CEO Mark Zuckerberg suggests the layoffs will affect the family of apps and realities in each of its organizations laboratory.
He said: “There is no good way to cut jobs, but we want to get all the relevant information to you as soon as possible and then do everything we can to support you through this.
“Everyone will soon receive an email letting you know what this layoff means for you. After that, each affected employee will have the opportunity to speak with someone to answer their questions and Attend an information session.”
Meta’s third-quarter revenue fell 4% year over year to $27.7 billion, and its net income fell to $4.39 billion from $9.19 billion. The company’s market cap has fallen from $1 trillion during the pandemic to $250 billion.
According to him, this will affect the company’s hiring plans as it plans to hire fewer people next year.
Announcing the layoffs, Zuckerberg said: “Today I’m going to share some of the toughest changes we’ve made in Meta’s history.
“I decided to reduce the size of our team by about 13% and let more than 11,000 talented employees leave. We also took some additional steps by cutting discretionary spending and extending our hiring freeze into the first quarter , become a leaner, more efficient company.
“I want to take responsibility for these decisions and how we got here. I know it’s been tough for everyone, and I’m especially sorry to those affected.”
According to him, COVID has led to increased revenue growth and increased investment in the company, but it has not yielded the expected returns. Online commerce returned to pre-COVID trends, he said, but a macroeconomic downturn, increased competition and lost advertising signals caused the company’s revenue to fall well short of expectations.
Laid-off workers at Meta US will receive 16 weeks’ worth of base pay plus an additional two weeks of severance pay per year of service, with no cap. They will be paid for all remaining PTO time; they will receive their health insurance on November 15, 2022, and will receive health insurance for themselves and their families for six months. They will also receive three months of career support and will receive immigration support (if they hold a visa).
It added that similar support would be available for those outside the United States, and the company would consider local employment laws. In addition to layoffs, Meta plans to shift more resources to a handful of high-priority growth areas and cut costs in its business, including shrinking budgets, reducing perks and shrinking its real estate footprint.
Meta joins a growing list of tech companies laying off jobs since early 2022. According to layoffs.fyi, 763 startups will lay off 106,046 jobs in 2022.