Facebook owner Meta Platforms It told employees it would stop making smart screens and smartwatches, and nearly half of the 11,000 jobs cut this week in an unprecedented cost-cutting move were in tech sectors.
He said this during a meeting with staff at City Hall, reported by Reuters. Must submit. Executives also said they were reorganizing parts of the company, combining the voice and video calling unit with other messaging units and creating a new division. Family foundationsFocus on difficult engineering problems.
The first mass layoffs in the social media company’s 18-year history hurt employees at all levels and teams, including high-performing individuals, executives said.
Overall, 54 percent of the layoffs were in business positions, with the rest in the technology sector, said Lori Goler, Meta’s head of human resources. Meta’s recruiting team has been cut almost in half, she said.
The executives added. Job cuts. They did not expect. However, other costs must be cut, contractors, real estate They say they are aware of reviews of various computer infrastructure and products.
Cutting smart devices.
Chief Technology Officer Andrew BosworthOne who works metaverse-wise Practical labs The division told staff that Meta would end its business. Portal Smart display devices and its smartwatches.
Meta decided earlier this year to stop marketing Portal devices, known for their video calling capabilities, and instead focus on business sales to consumers, Bosworth said.
He said executives had recently decided to “make big changes” as the economy slowed.
“It’s going to take a long time, it’s going to take a lot of investment to get into the business sector, and I feel like it’s the wrong way to invest your time and money,” Bosworth said.
The portal was not a major revenue generator, but attracted personal business from potential users. Meta has yet to unveil any smartwatches.
Bosworth said the smartwatch unit will focus on augmented reality glasses. He added that more than half of the total investment in Reality Labs goes into reality.
chief Executive Officer Mark Zuckerberg On Friday, Meta reiterated its apology to employees who failed to anticipate the first-ever revenue decline to cut the workforce by 13% from Wednesday.
Meta was hired during the pandemic, when social media use by consumers stuck at home was on the rise. But rising costs and rapidly rising interest rates have hurt the economy this year as advertisers and consumers push on spending.
Competition from companies has also increased TikTok It then lost access to valuable user data that powered its ad targeting systems. Apple It has made privacy-oriented changes to its operating system.
“Revenue streams are much lower than expected. I got it wrong again. It was a big mistake in planning for the company. I take responsibility,” Zuckerberg said.
He added that there are no plans to increase the Reality Labs unit’s headcount “substantially” going forward.
Meta shares were up 1% at $113.02.