Facebook parent meta cuts 11,000 jobs, 13% of workforce
New York, Nov 9: Facebook parent Meta is laying off 11,000 people, about 13% of its workforce, as it contends with faltering revenue and broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees Wednesday.
The job cuts come just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk.
There have been numerous job cuts at other tech companies that hired rapidly during the pandemic.
Zuckerberg as well said that he had made the decision to hire aggressively, anticipating rapid growth even after the pandemic ended.
"Unfortunately, this did not play out the way I expected," Zuckerberg said in a prepared statement.
"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."
Meta, like other social media companies, enjoyed a financial boost during the pandemic lockdown era because more people stayed home and scrolled on their phones and computers.
But as the lockdowns ended and people started going outside again, revenue growth began to falter.
An economic slowdown and a grim outlook for online advertising by far Meta's biggest revenue source have contributed to Meta's woes.
This summer, Meta posted its first quarterly revenue decline in history, followed by another, bigger decline in the fall.
Some of the pain is company-specific, while some is tied to broader economic and technological forces.
Last week, Twitter laid off about half of its 7,500 employees, part of a chaotic overhaul as Musk took the helm.
He tweeted that there was no choice but to cut the jobs "when the company is losing over
4M/day," though did not provide details about the losses.
Meta has worried investors by pouring over
10 billion a year into the "metaverse" as it shifts its focus away from social media.
Zuckerberg predicts the metaverse, an immersive digital universe, will eventually replace smartphones as the primary way people use technology.
Meta and its advertisers are bracing for a potential recession.
There's also the challenge of Apple's privacy tools, which make it more difficult for social media platforms like Facebook, Instagram and Snap to track people without their consent and target ads to them.
Competition from TikTok is also a growing threat as younger people flock to the video sharing app over Instagram, which Meta also owns.
"We've cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint," Zuckerberg said.
"We're restructuring teams to increase our efficiency. But these measures alone won't bring our expenses in line with our revenue growth, so I've also made the hard decision to let people go."
Zuckerberg told employees Wednesday that they will receive an email letting them know if they are among those being let go. Access to most company systems will be cut off for people losing their jobs, he said, due to the sensitive nature of that information.
"We're keeping email addresses active throughout the day so everyone can say farewell," Zuckerberg said.
Former employees will receive 16 weeks of base pay, plus two additional weeks for every year with the company, Zuckerberg said.
Health insurance for those employees and their families will continue for six months.
Shares of Meta Platforms Inc. jumped 4% before the opening bell Wednesday.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Gruha Jyothi, drought in state contribute to 11.35 pc increase in power consumption in 2023-24
Bengaluru: The overall power consumption on domestic basis across Karnataka has increased by 11.35 per cent between August 2023 and July 2024, with all electricity supply companies (escoms), except the Bengaluru Electricity Supply Company (BESCOM), recording a rise of 10 to 19.75 per cent this year.
The power use has increased by 3.76 per cent within BESCOM limits, which includes not only Bengaluru Urban and Rural districts but also other districts like Ramanagar, Tumakuru, Kolar, Chikkaballapur, Davanagere and Chitradurga in 2023-24, reports Deccan Herald.
The increase is being attributed to the extension in drought and high-temperature days in the state as well as to the implementation of the Gruha Jyothi scheme by the state government, as the number of beneficiaries has increased during said period by 7.13 per cent.
In contrast to the hike witnessed in the state this year, Karnataka had recorded a 4.64 per cent increase in power consumption in 2022-2023, as households had used 16,089 million units (MUs) in 2023-24, which was 1,263 MUs higher than the number of units consumed in 2022-23.
While the six escoms in Karnataka provides electricity to around 1.98 crore households in total, more than 1.69 crore users have enrolled for Gruha Jyothi. Of these, 1.6 crore users have availed of the benefits of the scheme.
The government had given a 10 per cent buffer on the average power consumption of 2022-23, for the households to receive zero-electricity bill, with Energy Department sources informing that the state government had predicted the power consumption in Karnataka to rise by 10 per cent at most, as compared to 2022-23.
The state government had, however, not allocated additional funds in the budget for the scheme, although it has been clearing escom dues regularly, a senior officer has said.
Another senior officer confirmed that drought and high temperatures have contributed to the increased household power consumption across the state. However with good rainfall this year, the power consumption could be expected to return to its average level, the officer added.
Low rainfall in the summer of 2023 had reduced the power supply in the state, forcing escoms to also reduce supply to irrigation pumpsets. Several areas in the state also used to report scheduled load shedding. There have been instances where the government has purchased power from private players and national grid at Rs 7.42 to Rs 10 per unit during peak season, said the officer.
The state currently depends on renewable energy sources, including hydro, wind and solar powers, to meet 63 per cent of its requirements.
