You may have seen that Meta, the parent company of Facebook, Instagram and WhatsApp, is set to cut 13% of its workforce. That's 11,000 employees 😨.

So, what's going 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.

Pink ornament
Many people predicted this would be a permanent acceleration. I did too, so I made the decision to significantly increase our investments.
Mark Zuckerberg

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.

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I got this wrong, and I take responsibility for that
Mark Zuckerberg

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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Meet the authors

Lucy Burgess

Lucy Burgess

Head of Content

Lucy has spent the last 8 years working in fintech. It's safe to say she's pretty passionate about making finance welcoming to everyone.

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James Ashoo

Content Writer

James has been investing for over four years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

Harjas Singh

Harjas Singh

Chief Product Officer & Co-Founder

With a wealth of experience in fintech, Harjas is the man in the know when it comes to all things product. Investing features, chatting capabilities and thriving communities – he oversees all development on the Shares app!