Meta CEO Mark Zuckerberg told company executives that layoffs would begin Wednesday morning, laying the blame for the company’s missteps at his own feet, The Wall Street Journal reported Tuesday, citing anonymous sources familiar with the matter.
Zuckerberg claimed that he was too optimistic about the company’s growth and said he was accountable for decisions that led to overstaffing at the social media giant, the WSJ reported Tuesday, citing anonymous sources familiar with a meeting between Zuckerberg and Meta executives.
Layoffs are anticipated to affect several thousand employees and would represent the first large-scale cut at one of Big Tech’s most prominent companies, which employed more than 87,000 people as of September.
While layoffs will likely impact the whole company, Zuckerberg singled out the business and recruiting teams when speaking to executives, the WSJ reported. Human Resources Head Lori Goler told meeting attendees that affected employees would receive at least four months of salary as severance.
The cuts, expected to be announced at 6 a.m. EST Wednesday, come as Zuckerberg continues to spend billions on virtual reality programs that investors are increasingly losing confidence in.
Meta stock is down 70% on the year as TikTok choked out competitors in the social-media market and new privacy rules for apps on Apple devices limited Meta’s ability to target ads to users, according to the WSJ .
On Nov. 3, ridesharing app Lyft and payment processing startup Stripe announced plans to cut 13% and 14% of their staff respectively, each citing recession concerns as a motivating factor for the headcount reductions. Elon Musk’s Twitter began layoffs on Nov. 4 that are estimated to have impacted roughly half the company.