Mark Zuckerberg, the CEO of Facebook parent company Meta, announced in a letter to staff on November 9 that the company is letting go of 11,000 workers, or approximately 13% of its employment, as it struggles with declining revenue and larger digital industry problems. The action was taken a week after Twitter's new owner, billionaire Elon Musk, laid off a large number of employees. Because more individuals stayed at home and read on their phones and laptops during the pandemic lockdown period, Meta, like other social media sites, benefited financially. However, as the lockdowns ended and people resumed venturing outside, the growth of revenue slowed. The downturn in the economy and the unfavorable forecast for internet advertising, by far Meta's largest source of income, have added to the company's problems. This past summer, Meta recorded its first-ever quarterly sales decrease, which was followed by a larger decline in the following season. About half of Twitter's 7,500 employees were let go last week as part of a chaotic reorganization following Mr. Musk's appointment as CEO. Despite not mentioning specific losses, he stated that there was no other option than to eliminate the positions “when the company is losing over $4M/day.”

Key Points

• Mark Zuckerberg, the CEO of Facebook parent company Meta, announced in a letter to staff on November 9 that the company is letting go of 11,000 workers, or approximately 13% of its employment, as it struggles with declining revenue and larger digital industry problems.
• About half of Twitter's 7,500 employees were let go last week as part of a chaotic reorganization following Mr. Musk's appointment as CEO. Despite not mentioning specific losses, he stated that there was no other option than to eliminate the positions “when the company is losing over $4M/day.”