Facebook parent Meta cuts 11,000 jobs, 13pc of workforce

A car passes Facebook's new Meta logo on a sign at the company headquarters on Oct. 28, 2021, in Menlo Park, Calif. Facebook parent Meta is laying off 13% of its employees as it contends with faltering revenue and broader tech industry woes. [AP]

Competition from TikTok is also an a growing threat as younger people flock to the video sharing app over Instagram, which Meta also owns.

"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."

Zuckerberg told employees Wednesday that they will receive an email letting them know if they are among those being let go. Access to most company systems will be cut off for people losing their jobs, he said, due to the sensitive nature of that information.

"We're keeping email addresses active throughout the day so everyone can say farewell," Zuckerberg said.

Former employees will receive 16 weeks of base pay, plus two additional weeks for every year with the company, Zuckerberg said. Health insurance for those employees and their families will continue for six months.

Shares of Meta Platforms Inc. jumped 4% before the opening bell Wednesday.