Meta Lays Off 11,000 Workers After Stock Slides Nearly 20%

Meta, the company formerly known as Facebook, is now in the process of laying off 13% of its staff. CEO Mark Zuckerberg announced the news to staff in a letter on Wednesday, November 9, explaining that the layoffs were enacted to "become a leaner and more efficient company."

Meta's stock slid by nearly 20% back in October when the company announced its guidance for Q4 (fourth quarter) earnings. Meta's costs and expenses rose nearly 20% year-over-year in Q3 of 2022, while its overall sales declined 4% and its operating income dipped by 46%. Needless to say, this was not the news that investors wanted to hear.

In the letter, Zuckerberg further states that Meta will ease its usual recruiting numbers for 2023, including a hiring freeze in Q1. Those who have been laid off will receive 16 weeks of pay, with an additional two weeks for every year of service. The severance also includes six months of health insurance coverage.

Meta has struggled over the past year, as it continues to dump money into the as-yet-unproven "metaverse" concept. In a recent investor call, Zuckerberg reiterated the company's devotion to building such a platform, noting that metaverse-related expenses will "grow significantly year-on-year."