Meta (NASDAQ: META) will be laying off 13% of its employees, more than 11,000 workers, according to a letter sent out to staff members by CEO Mark Zuckerberg. The move comes as the company faces various challenges to its core business. Meta shares fell approximately 7.7% Wednesday morning.
“Today I’m sharing some of the most difficult changes we’ve made in Meta’s history,” Zuckerberg said in the letter. “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.”
Investors have been on the fence regarding Meta’s rising costs and expenses, which have risen 19% year over year within the third quarter to USD22.1 Billion. Overall sales also fell 4% to USD27.71 Billion in the quarter while its operating income plummeted 46% from the previous year to USD5.66 Billion.
“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.” Zuckerberg said.