Meta CEO Zuckerberg Begins Employee Layoffs; End Of Meta Dominance?

Meta is going through a massive layoff phase. The company head Mark Zuckerberg addressed hundreds of executives, after laying off more than 11,000 employees, according to the official statement on the matter. The Meta CEO accepted responsibility for the missteps of the company. Is this massive layoff the beginning of the end for Meta, especially when Zuckerberg seems to have put all his eggs in the VR basket?

Zuckerberg said his over-optimism about the growth of the brand has led to over-staffing, reports The Wall Street Journal. Thousands of Meta employees are expected to get the pink slip today, November 9. It might also be one of the largest layoffs in the tech sector, the report adds.

Meta Employee Layoffs Today

The report further details that the recruiting and business teams are among those facing the most layoffs. Fired employees will be given at least four months of salary, people familiar with the matter told the publication.

Going into the details, Meta reported more than 87,000 employees at the end of September this year. Despite the slowdown, the company aggressively hired through the COVID-19 pandemic. However, the planned massive layoffs happening today, November 9, are one of the biggest in the company's 18-year history.

What Happens To Meta Now?

Meta has been facing several setbacks for the past few months. In fact, Meta's stocks have fallen more than 70 percent this year alone. Meta has also been expanding its portfolio to the VR segment, with the intention of hedging against threats to its core social media business.

Reports claim investors have been wary of Meta and its business plans. As far as social media is concerned, Meta has been facing stiff competition from rivals, such as TikTok in the global market. Moreover, Apple iOS users can opt-out of target advertising, which has further curtailed the ability of Facebook and Instagram to woo advertisers.

At the same time, Zuckerberg has been heavily emphasizing VR. The brand recently unveiled the Meta Quest Pro VR headset, which comes with many premium features and an intimidating price tag. Reports suggest Apple will also be announcing its mixed reality headset soon, which might be a tough competitor to Meta's VR headset.

With the massive layoffs, it seems like Meta might be at its lowest point. It remains to be seen how Meta copes with this phase in the coming months.