Meta Platforms Inc announced it will eliminate more than 11,000 positions, or 13% of its workforce, as it doubled down on its risk metaverse bet despite a crumbling advertising market and decades-high inflation.
The huge layoffs, among the biggest this year and the first in Meta's 18-year existence, after hundreds of job losses at Elon Musk's Twitter Inc, Microsoft Corp and Snap Inc.
During the epidemic, Meta actively hired to meet an increase in social media use by home - based care consumers. Advertisers and consumers have cut spending this year due to rising expenses and interest rates.
Meta shares rose 4% on Wednesday as investors cheered the bank's pragmatic approach to the metaverse, which Zuckerberg predicts would take a decade to produce fruit.
The business estimates 2023 costs between $94 billion and $100 billion, down from $96 billion to $101 billion.
The company lost $9.44 billion from January to September, and losses will grow in 2023.
McCarthy said he was suspicious of the company's metaverse investments and that increasing interest rates and a gloomy macro environment might affect ad sales.
Meta will pay 16 weeks of basic salary, two weeks for every year of service, and remaining paid time off.
Meta, which had 87,314 employees as of September, will provide affected employees shares set to vest on Nov. 15 and six months of healthcare coverage.
The business did not specify the specific layoff charge, but said it was included in its $85 billion to $87 billion 2022 spending estimate.