Get All Access for $5/mo

Meta Will Let Go of 11,000 Employees in Company's First Large-Scale Layoffs Facebook launched as "The Facebook" in 2004. On Wednesday, it conducted its first mass layoff, reducing headcount by about 13%.

By Gabrielle Bienasz

Opinions expressed by Entrepreneur contributors are their own.

Meta Platforms, the parent company of Facebook, said Wednesday it will lay off about 11,000 employees. This is the first time in company history that it has conducted large-scale layoffs.

The cuts will reduce its employee count by about 13%, CEO Mark Zuckerberg wrote in a blog announcing the changes to employees.

"Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I'd expected. I got this wrong, and I take responsibility for that," he wrote in the post.

Original story below:

Meta plans to start laying off large numbers of employees this week for the first time in its history, the Wall Street Journal reported Sunday, citing people familiar with the matter.

Facebook launched as "The Facebook" in 2004 and has since grown to some 1.98 billion daily active users. The company had not reported a decline in quarterly revenue until July 2022. In its most recent earnings report, it boasted 87,314 employees as of late September, up 28% from the same time last year.

The layoff announcement, which the WSJ reported could start Wednesday of this week, comes amid a labor bloodbath in the tech industry and anxiety about a larger economic downturn.

Twitter's new owner, Elon Musk, laid off half the company's staff last week. Meta is also dealing with the additional stress of its $15 billion investment in the metaverse, which has been criticized, sometimes publicly, by investors, and even the founder of Oculus.

Although Meta CEO Mark Zuckerberg has remained bullish on the metaverse, he has been sounding the alarm about employee cuts for months.

"Realistically, there are probably a bunch of people at the company who shouldn't be here," he told employees in June.

The New York Times also reported on Sunday that Meta would begin layoffs, citing "three people with knowledge of the situation."

Those sources further told the NYT it would be "the job cuts were set to be the most significant at the company since it was founded in 2004," the outlet wrote.

As the WSJ reported, the layoffs could affect "thousands" of people.

Meta declined to comment. It pointed to remarks made by Zuckerberg at the company's most recent earnings call.

"In 2023, we're going to focus our investments on a small number of high priority growth areas. So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year. In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today," Zuckerberg said at the meeting.

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick


ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Business News

Sony Pictures Entertainment Purchases Struggling, Cult-Favorite Movie Theater Chain

Alamo Drafthouse originally emerged from bankruptcy in June 2021.