Meta layoff affects over 11,000 employees per a new message CEO Mark Zuckerberg sent to his employees. This is the largest layoff in the Technology Industry for this year.
Meta Layoff: The Details
The Meta layoff affects about 13% of its staff which is currently around 87,000. We don’t know the exact number of job cuts yet, but per the CEO’s letter is it over 11,000 employees. In addition to the layoffs, Meta is cutting discretionary spending and extending their hiring freeze through Q1 2023. (So if you really wanted to work there you’ll have to wait until April 2023 to try to get a job there.)
I stated in my previous article about the upcoming layoffs that Meta grew rapidly during the last two years due to the increased usage from the Pandemic. Thus, Meta (and many other Technology companies), hired more employees to help. Unfortunately, as the lockdowns from the Pandemic loosen, and more people going back outside to travel or do other activities than look their phone screen, Meta saw its usage decrease back to pre-Pandemic levels. This meant the company didn’t need all those employees hired just two years ago.
According to Mark Zuckerberg the company tried other options before deciding on layoffs. That includes reducing department budgets, cutting back on staff perks, and offloading some of their offices and other real estate. In addition, the company restructured teams to increase efficiency. Yet, all of this didn’t combat the rising expenses so the company decided on job cuts.
What Happens To Affected Employees?
They lose their job today. Yep, that was pretty quick. However, employees in the Meta layoff will get the following:
- At least 16 weeks of base pay plus two additional weeks for every year of service, with no cap.
- Payout of all PTO time the employee accumulated.
- Get their November 15, 2022 Restricted Stock Units (RSUs) vesting.
- Health insurance coverage for the next six months.
- Three months of job-seeking assistance, including access to unpublished job leads.
- Those on visas will get dedicated support to assist them.
The employees overseas affected by the layoffs will get additional treatment based on their country’s employment laws.
What Can Business Owners Learn From This?
Just as I said in my analysis of Jack Dorsey’s apology to his former Twitter employees, Meta made the same mistakes as the former CEO: Growing too fast.
I understand when businesses see an uptick in usage they want to grow larger to handle it. However, many increase in size too large too fast without a plan. And many don’t wait to see if the increase usage will stay. In some cases it doesn’t. Sometimes it’s better to create a plan to handle the increased customer demand with the current staff because many employees are underutilized at work as it is.