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Layoffs in Meta: how much is the compensation that Mark Zuckerberg paid to the 11 thousand employees fired

The Facebook creator shed about 13% of its workforce this week.

For the first time since the creation of Facebook, currently reconverted into Meta, mark zuckerberg made the drastic decision to considerably downsize his company with the dismissal of a total of 11 thousand employeeswhich corresponds to around 13% of its workforce.

After the decision made by Zuckerberg, it was announced that the dismissed employees will receive 16 weeks of basic salary and two additional weeks of salary for each year of service. In addition, the company will cover his health insurance for six months.

It also promised to help non-US employees with their paperwork related to their work visas. Meta did not immediately specify the geographic distribution of the job cuts.

As part of this contraction, the hiring within the group are also frozen until the end of March 2023.

The longing for a “more agile” company: what lies behind the layoffs at Meta

The company that Mark Zuckerberg commands began a restructuring. Photo: Kirill KUDRYAVTSEV / AFP.

On Wednesday, November 9, the dismissal of employees, a total of 11 thousand, which corresponds about 13% of troops in Metathe parent company of the social media giant.

“Today I share some of the toughest changes we’ve ever made of Meta (…) I have decided to reduce the size of our team by approximately 13% and separate myself from 11 thousand of our talented employees, ”announced Zuckerberg, CEO of the group, in a message addressed to employees.

“I want to take responsibility for these decisions and how we got here. I know this is difficult for everyone and I am sorry, especially to those affected,” Zuckerberg said.

The creator of Facebook announced that they will also take a series of additional steps to become a “more agile and efficient” company through discretionary spending cuts and an extension of the hiring freeze policy until 2023.

As of September 30, Meta had about 87 thousand employees worldwide on its different platforms, which also include the social networks Facebook and Instagram and WhatsApp instant messaging.

Recently, the social network published disappointing quarterly resultswith a drop in its turnover and profits, as well as a stagnation in the number of users.

This balance accelerated the decline of the company’s stock, which has lost more than 70% in total since the beginning of the year on the Nasdaq. This Wednesday, Wall Street reacted favorably to the announcement of layoffs, and Meta closed with a gain of 5.16%.

More mass layoffs in the technology sector

Elon Musk made the decision to lay off 7,500 employees in his first days at the helm of Twitter.  Photo: REUTERS.

Elon Musk made the decision to lay off 7,500 employees in his first days at the helm of Twitter. Photo: REUTERS.

The measure taken by Meta is part of a broader context of massive job cuts in the sector, faced above all with the drop in advertising revenuethe mainstay of most technology companies.

At the end of August, Snapthe parent company of the Snapchat app, cut about 20% of its workforce, more than 1,200 employees.

Last week, two Silicon Valley companies, Stripe (digital payments) and lyft (reservations for cars with drivers), reported massive layoffs.

amazonMeanwhile, it froze hiring at its offices.

Another who caused a shock in the industry was Elon Musk, who shed about half of his 7,500 employees in his first days as CEO of Twitter.


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