Meta Platforms Inc said on Wednesday it will let go of 13 percent of its workforce, or more than 11,000 employees, in one of the biggest technology layoffs this year as the Facebook parent battles soaring costs and a weak advertising market.
The broad job cuts, the first in Meta’s 18-year history, follow thousands of layoffs at other leading tech companies including Elon Musk-owned Twitter and Microsoft Corp.
The pandemic boom that boosted tech companies and their valuations has turned into a bust this year in the face of decades-high inflation and rapidly rising interest rates.
Meta, whose shares have lost more than two-thirds of their value, said it also plans to cut discretionary spending and extend its hiring freeze through the first quarter.
“Today I’m sharing some of the most difficult changes we’ve made in Meta’s history,” the company’s founder Mark Zuckerberg said in a message to employees announcing the layoffs.
“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.”
An economic slowdown and a grim outlook for online advertising – by far Meta’s biggest revenue source – have contributed to the company’s woes. This summer, Meta posted its first quarterly revenue decline in history, followed by another, bigger decline in the fall.