10 November,2022 09:35 AM IST | New York | Agencies
Meta, like other social media companies, enjoyed financial boost during pandemic lockdowns, but after it, revenue growth began to falter. Pic/AP
Facebook parent Meta is laying off 11,000 people, about 13 per cent of its workforce, as it contends with faltering revenue and broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees Wednesday.
The job cuts come just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk. There have been numerous job cuts at other tech companies that hired rapidly during the pandemic. Zuckerberg said he had made the decision to hire aggressively, anticipating rapid growth even after the pandemic. "Unfortunately, this did not play out the way I expected," Zuckerberg said. "Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I'd expected. I got this wrong, and I take responsibility for that."
Meta, like other social media companies, enjoyed a financial boost during the pandemic lockdowns because more people stayed home and scrolled on their phones and computers. But as lockdowns ended and people started going outside, revenue growth began to falter. An economic slowdown and grim outlook for online advertising - by far Meta's biggest revenue source - contributed to Meta's woes.
Tesla Inc top boss Elon Musk has sold $3.95 billion worth of shares in the electric-vehicle maker, regulatory filings showed, days after he closed the $44-billion deal for Twitter.
Cryptocurrencies sharp ly declined again on Wednesday, as investors fretted about stability of the sector and financial health of FTX despite plans for a rescue deal from bigger rival Binance. Crypto giant Binance signed a nonbinding agreement on Tuesday to buy FTX's non-U.S unit to help cover a "liquidity crunch" at the rival exchange. The proposed deal followed speculation on FTX's financial health that snowballed into $6 bn withdrawals in 72 hours before Tuesday's deal.
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