So, what went wrong for Meta?
Well, it experienced a rise in revenue during the COVID-19 pandemic, as many tech companies did. With many of us staying home, tech companies across the globe benefited as we sought ways to stay connected with our friends and family.
The mistake? Meta thought this growth would continue after the pandemic, and Zuckerberg himself takes full accountability.
Many people predicted this would be a permanent acceleration. I did too, so I made the decision to significantly increase our investments.
Instead of continued growth, the global economy has experienced a large downturn, with areas such as web 3 taking some of the toughest blows. Meta has a sharp focus on web 3, having invested more than £86bn on R&D and product development in the sector – over £13bn in the last year alone.
I got this wrong, and I take responsibility for that
What's next for Meta?
It seems Zuckerberg's vision for Meta remains unchanged, however.
The company will remain focused on high-priority growth areas, like artificial intelligence (AI), advertising, and of course, the long-term vision for the metaverse.
In the short-term, Meta will look to cut costs elsewhere – including reducing its spending on buildings and offices and increasing desk-sharing.
What will happen to those made redundant?
Employees are expected to receive an email soon, Zuckerberg said, and will have an opportunity to 'ask questions'.
U.S. based employees will receive 16 weeks worth of pay plus a week for each year they've been with Meta. An additional family health insurance package of 6 months will also be offered.
It's said that 'similar' packages will be offered to employees outside the U.S. With 3,000 workers based in Meta's European office in Dublin, it remains unclear how many will be affected in each region.
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