<p>Facebook parent company Meta has let go around 13 per cent&nbsp;of its workforce. In a letter to his employees,&nbsp;Zuckerberg explained how he had&nbsp;hired aggressively during the pandemic and had anticipated quick growth&nbsp;even after the pandemic ended.&nbsp;The mass layoffs, which are the first in Meta's 18-year existence, came shortly after&nbsp;massive job&nbsp;cuts at Microsoft Corp. and Twitter, now owned by Elon Musk. But, why did Meta fire so many employees in the first place? What are the ramifications of this move for its Indian employees? How does it reflect on the larger structural problems of the company? We explain the same in-depth.&nbsp;</p>

<h2><strong>What is Meta exactly doing?</strong></h2>

<p>As it struggles with rising costs and plummeting ad revenues, Meta has adopted various cost-cutting strategies&nbsp;in addition to firing almost 11,000 employees. By extending its freeze on fresh recruitment until the first quarter, the firm intends to reduce discretionary spending. However, it hasn't mentioned the areas that would be affected by the transfers or the estimated cost cuts. Before the firings, <a href="https://www.wionews.com/videos/facebook-parent-to-combine-voice-video-unit-with-messaging-teams-533587">Meta</a> had been indirectly hinting at cost-cutting measures by reducing its real estate holdings and doing away with some of the benefits it provided to its employees, such as free laundry&nbsp;and dry cleaning services,&nbsp;dinners they were permitted to pack&nbsp;home to their families and avail&nbsp;free valet services.&nbsp;</p>

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<blockquote class="twitter-tweet">
<p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/Gravitas?src=hash&amp;ref_src=twsrc%5Etfw">#Gravitas</a> | Mark Zuckerberg is set to pull off an <a href="https://twitter.com/elonmusk?ref_src=twsrc%5Etfw">@elonmusk</a>. His company<a href="https://twitter.com/Meta?ref_src=twsrc%5Etfw">@Meta</a> is about to unleash its biggest round of layoffs in history.<br />
<br />
Thousands of Meta employees are set to be sacked. Why? <a href="https://twitter.com/PriyankaSh25?ref_src=twsrc%5Etfw">@PriyankaSh25</a> reports <a href="https://t.co/IQtfiVyxHq">pic.twitter.com/IQtfiVyxHq</a></p>
— WION (@WIONews) <a href="https://twitter.com/WIONews/status/1590054768675762176?ref_src=twsrc%5Etfw">November 8, 2022</a></blockquote>
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<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

<blockquote>
<h5><strong>“Unfortunately, this did not play out the way I expected,” Zuckerberg wrote. “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.”</strong></h5>
</blockquote>

<h2><strong>Reasons behind downsizing</strong></h2>

<p>There are&nbsp;two key factors at play.&nbsp;First, during the peak of the COVID-19 pandemic, social media companies&nbsp;embarked on a recruiting spree.&nbsp;The reason being that more people stayed indoors&nbsp;during the pandemic lockdown and spent more time on the internet.&nbsp;</p>

<blockquote>
<h5><strong>&nbsp;Second, investors are concerned about Meta's massive $10 billion investment in the "metaverse."</strong></h5>
</blockquote>

<p>However, once the lockdowns ended and people resumed venturing outdoors, the upward trend faded.&nbsp;“In its earnings report last month, Meta disclosed that Reality Labs, the part of the company working on the metaverse, had $3.67 billion in operating losses. Reality Labs also experienced its lowest revenue since the final quarter of 2020. The company expects the operating losses for Reality Labs to increase next year,”&nbsp;The New York Times<em>&nbsp;</em>reported.</p>

<p><strong>Also WATCH |&nbsp;Twitter, Meta: Tech 'bloodbath' continues as tech giants on firing spree</strong></p>

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/twitter-meta-tech-bloodbath-continues-as-tech-giants-on-firing-spree-533105/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

<p>The United States' economic slump made everything worse. This past summer, Meta recorded its first-ever quarterly sales decrease, which was followed by a larger decline in the following season.</p>

<h2><strong>What next for Meta?</strong></h2>

<p>A impending&nbsp;recession has Meta and its advertisers on high alert. The difficulty of using Apple's privacy settings, which make it harder for social media sites like Facebook, Instagram, and Snap to monitor users without their permission and target them with adverts, is another issue. As more young people choose TikTok over Instagram, which Meta also owns, competition from TikTok is becoming a greater concern.</p>

<blockquote>
<h5><strong>“We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint,” Zuckerberg said. ”We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go.”</strong></h5>
</blockquote>

<p>More cost cuts at Meta will be rolled out in coming months, Zuckerberg said.&nbsp;However, Zuckerberg has made it clear&nbsp;that his commitment&nbsp;to the metaverse&nbsp;is unwavering.</p>

<h2><strong>What happens to the Indians who got fired?</strong></h2>

<p>Many affected Indians have expressed their concern on social media platforms like Twitter and LinkedIn. These affected Indians are on H1B visas and must find jobs within 60 days of the termination date. Any H1B visa holder who is unable to obtain employment within 60 days will have to return to their country of origin. In this situation, Indians who are jobless after the grace period must go&nbsp;back. The original employer will need to bear the cost of&nbsp;their return ticket in accordance with H1B visa policy.</p>

<p>Unlike Musk, Zuckerberg said that he will assist migrant employees with their immigration.</p>

<blockquote>
<h5><strong>“I know this is especially difficult if you’re here on a visa. There’s a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status. We have dedicated immigration specialists to help guide you based on what you and your family need. Outside the US, support will be similar, and we’ll follow up soon with separate processes that take into account local employment laws,”&nbsp;Zuckerberg said in a letter addressing the employees.&nbsp;</strong></h5>
</blockquote>

<p><strong>Also read |</strong>&nbsp;<a href="https://www.wionews.com/business-economy/india-dream11-co-founder-offers-jobs-to-people-fired-from-twitter-meta-and-others-533728">Fantasy platform Dream11 co-founder offers jobs to people fired from Twitter, Meta and others</a></p>

<p>Employees in the United States will get 16 weeks of severance compensation in addition to two&nbsp;"additional weeks for every year of service, with no cap." All remaining Paid time off leave, or PTO (an employee leave policy under which the company sanctions a pool of leaves for its employees) vesting on 15 November,&nbsp;2022, the cost of healthcare for them and their families for six months, and three months of career support from an outside vendor will be provided to laid-off staff.&nbsp;</p>

<p><em>(With inputs from agencies)</em></p>

<p><strong>WATCH WION LIVE HERE:</strong></p>

<p><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed" style="width:100%;max-width:560px;" width="560"></iframe></p>


Facebook parent company Meta has let go around 13 per cent of its workforce. In a letter to his employees, Zuckerberg explained how he had hired aggressively during the pandemic and had anticipated quick growth even after the pandemic ended.

Facebook parent company Meta has let go around 13 per cent of its workforce. In a letter to his employees, Zuckerberg explained how he had hired aggressively during the pandemic and had anticipated quick growth even after the pandemic ended. The mass layoffs, which are the first in Meta's 18-year existence, came shortly after massive job cuts at Microsoft Corp. and Twitter, now owned by Elon Musk. But, why did Meta fire so many employees in the first place? What are the ramifications of this move for its Indian employees? How does it reflect on the larger structural problems of the company? We explain the same in-depth. What is Meta exactly doing? As it struggles with rising costs and plummeting ad revenues, Meta has adopted various cost-cutting strategies in addition to firing almost 11,000 employees. By extending its freeze on fresh recruitment until the first quarter, the firm intends to reduce discretionary spending. However, it hasn't mentioned the areas that would be affected by the transfers or the estimated cost cuts. Before the firings, Meta had been indirectly hinting at cost-cutting measures by reducing its real estate holdings and doing away with some of the benefits it provided to its employees, such as free laundry and dry cleaning services, dinners they were permitted to pack home to their families and avail free valet services. #Gravitas | Mark Zuckerberg is set to pull off an @elonmusk. His company@Meta is about to unleash its biggest round of layoffs in history. Thousands of Meta employees are set to be sacked. Why? @PriyankaSh25 reports pic.twitter.com/IQtfiVyxHq — WION (@WIONews) November 8, 2022 × “Unfortunately, this did not play out the way I expected,” Zuckerberg wrote. “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.” Reasons behind downsizing There are two key factors at play. First, during the peak of the COVID-19 pandemic, social media companies embarked on a recruiting spree. The reason being that more people stayed indoors during the pandemic lockdown and spent more time on the internet. Second, investors are concerned about Meta's massive $10 billion investment in the "metaverse." However, once the lockdowns ended and people resumed venturing outdoors, the upward trend faded. “In its earnings report last month, Meta disclosed that Reality Labs, the part of the company working on the metaverse, had $3.67 billion in operating losses. Reality Labs also experienced its lowest revenue since the final quarter of 2020. The company expects the operating losses for Reality Labs to increase next year,” The New York Times reported. Also WATCH | Twitter, Meta: Tech 'bloodbath' continues as tech giants on firing spree The United States' economic slump made everything worse. This past summer, Meta recorded its first-ever quarterly sales decrease, which was followed by a larger decline in the following season. What next for Meta? A impending recession has Meta and its advertisers on high alert. The difficulty of using Apple's privacy settings, which make it harder for social media sites like Facebook, Instagram, and Snap to monitor users without their permission and target them with adverts, is another issue. As more young people choose TikTok over Instagram, which Meta also owns, competition from TikTok is becoming a greater concern. “We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint,” Zuckerberg said. ”We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go.” More cost cuts at Meta will be rolled out in coming months, Zuckerberg said. However, Zuckerberg has made it clear that his commitment to the metaverse is unwavering. What happens to the Indians who got fired? Many affected Indians have expressed their concern on social media platforms like Twitter and LinkedIn. These affected Indians are on H1B visas and must find jobs within 60 days of the termination date. Any H1B visa holder who is unable to obtain employment within 60 days will have to return to their country of origin. In this situation, Indians who are jobless after the grace period must go back. The original employer will need to bear the cost of their return ticket in accordance with H1B visa policy. Unlike Musk, Zuckerberg said that he will assist migrant employees with their immigration. “I know this is especially difficult if you’re here on a visa. There’s a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status. We have dedicated immigration specialists to help guide you based on what you and your family need. Outside the US, support will be similar, and we’ll follow up soon with separate processes that take into account local employment laws,” Zuckerberg said in a letter addressing the employees. Also read | Fantasy platform Dream11 co-founder offers jobs to people fired from Twitter, Meta and others Employees in the United States will get 16 weeks of severance compensation in addition to two "additional weeks for every year of service, with no cap." All remaining Paid time off leave, or PTO (an employee leave policy under which the company sanctions a pool of leaves for its employees) vesting on 15 November, 2022, the cost of healthcare for them and their families for six months, and three months of career support from an outside vendor will be provided to laid-off staff. (With inputs from agencies) WATCH WION LIVE HERE:

Meta layoffs EXPLAINED: Why did Meta fire 13% of its employees? What next for the Facebook parent company?

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Meta layoffs EXPLAINED: Why did Meta fire 13% of its employees? What next for the Facebook parent company?