Meta layoffs have global effect, including in Israel
Meta layoffs have global effect, including in Israel
Mark Zuckerberg announced on Wednesday that the company will cut 11,000 jobs, and Meta Israel will also be affected
Meta Platforms said on Wednesday it would cut more than 11,000 jobs, or 13% of its workforce, as the Facebook parent doubled down on its risky metaverse bet amid a crumbling advertising market and decades-high inflation.
The mass layoffs, one of the biggest this year and the first in Meta's 18-year history, will also affect its Israeli employees, Calcalist has learned. Meta employs around 1,000 people in Israel in an R&D center, as well as a sales and marketing center headed by Adi Soffer-Teeni, VP & GM Israel.
It is still unclear how many local employees will be among the 11,000 people at Meta to lose their job.
Like its peers, Meta hired aggressively during the pandemic to meet a surge in social media usage by stuck-at-home consumers. But its business has suffered this year as advertisers and consumers pull the plug on spending in the face of soaring cost pressures and rapidly rising interest rates.
"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," Chief Executive Officer Mark Zuckerberg said in a message to employees.
"I got this wrong, and I take responsibility for that."
Meta, once worth more than a trillion dollars, is now valued at $256 billion after losing more than 70% of its value this year alone.
The company now expects 2023 expenses between $94 billion and $100 billion, compared with the $96 billion to $101 billion range projected previously. It also narrowed its 2023 capital expenditures forecast range.
