Meta, the parent company of Twitter and Facebook, layoffs a significant portion of its workforce, with news circulating among professionals around the world. The mass layoffs seemed flippant when people came forward to share how they received the news. But Meta boss, Mark Zuckerberg thinks Meta handled the situation better than Elon Musk. At the company’s town hall meeting on Friday, Musk said he didn’t have time to plan layoffs as carefully as Meta and other companies, an insider reported, citing meeting attendees.
But Zuckerberg acknowledged that even if companies approach layoffs cautiously, there is no good answer. Meta announced on Facebook, WhatsApp, and Instagram this week that it would lay off more than 11,000 employees, but the research team focused on its Metaverse ambitions, resulting in billions of dollars in losses.
Zuckerberg announced mass layoffs at Meta, totaling 11,000 people — about 13% of the company, and in November, almost three times more than Twitter, which laid off 50% of its employees on the 4th. He sees the ad revenue crisis caused by his own decision to increase investment and by Apple’s decision to give users more control over how their personal information is used for advertising condemned.
But that’s only part of the story, say insiders and those watching the company’s operations from the outside, said a former Meta employee who left the company shortly before it was sacked and spoke on condition of anonymity because his current employer didn’t give it. WIRED entry “Probably in the last five to ten years, I think” — this goes back to before Zuckerberg became obsessed with the Metaverse.
Part of the loss is due to a series of dangerous and failed experiments conducted over the years by the parent companies of Facebook, WhatsApp, and Instagram, former employees said. “I can’t think of a successful meta-app or feature in the last five years that I haven’t had,” says one of his former employees. Former employees say this distraction from Meta’s core business is damaging the company. It takes place over time.
Twitter recently laid off 50% of its employees, including members of its trust and security team, Yoel Roth, the company’s head of security and integrity, tweeted earlier this week. According to 4,444 tweets by the company’s social media staff, teams responsible for communications, content moderation, human rights, and machine learning ethics have been wiped out, as have some product and development teams.
Twitter updated its app on Apple’s App Store on Saturday, and in Musk’s first major overhaul of the social media platform, he charged $8 for searchable blue ticks. Elon Musk laid off nearly 50% of his Twitter employees worldwide. Several news media reports have confirmed that employees in various countries have been asked to leave.
Most Indian employees were also asked to leave Elon Musk then confirmed on Twitter that nearly 50% of the workforce had been laid off. He added that Twitter is losing $4 million every day. In his tweet, he further added that everyone who was laid off was given a severance package: “Everyone who was laid off received three months’ worth of retirement, which is 50% more than the law requires,” he said.
There are concerns that the ongoing moderation of the platform may be affected as Twitter shrinks. Twitter’s newly appointed CEO has made it clear otherwise. “Contrary to what you might read in the press, hate speech declined this week and is below the historical average.” Before the layoff, the employee received an unsigned memorandum announcing the layoff.
Effects Of Layoffs
Firing one person in a company may seem like a small thing, but it often has a domino effect in organizations where employees work together to achieve a common goal. Layoffs create a missing link in your team and affect your organization in many ways. The company faces a bigger challenge when it comes to mass layoffs.
Direct Costs – When a business owner needs to save money at a company, one of her considerations is laying off employees in anticipation of savings in salary and benefits. However, layoffs often impose costs on companies that minimize savings. For example, a company may need to pay severance pay to retire employees, pay remaining employees overtime, and use temporary staff placement services.
Increased Sales – Employers who lay off their companies often see additional employees leaving their jobs. Layoffs can be disillusioning for high-level employees who choose to leave the company. Seeing a colleague leave unintentionally can make an employee seriously consider a job offer from another company or actively seek out a new job offer.
Poor customer retention – Employee layoffs can have a significant negative impact on customer retention. Every customer is an asset to any business and employers must find ways to retain each customer. When a company lays off an employee, it sends a message to customers that something is at stake A reduced workforce means delayed delivery of goods and services, which can further frustrate customers.
Emotional Stress – The fired person suffers the most, but the rest of the employees also suffer emotionally. Layoffs disrupt the status quo, requiring employees to take on additional responsibilities and develop new working relationships, which can be a source of stress. Employees working in fear can have lower productivity levels. If an unemployed person stays with the company until the contract expires, it will cause further damage to the company.
Understaffed companies may find it difficult to establish and maintain strong relationships with their employees. HR bridges the communication gap between management and employees and provides an opportunity for employees to vent their frustrations with the company and report misconduct. If your company does not have an HR department, you should develop a plan for effectively communicating and listening to your employees’ concerns. If you manage a large number of employees. B. Over the age of 50, it can be difficult to apply strategies to deal with each employee.
If employees are dissatisfied with the company or are unsatisfied with their work, production can decline and the company’s bottom line can decline. You can save a lot of money by not using human resources. Spending on human resource management and related costs, such as employment programs and services can total more than $1,000 per employee. According to Human Resource Executive Online, in 2009 his average total labor cost per employee was $1,569.
If you run a large company with hundreds of employees, the expense may be justified. Small businesses typically do not reach the revenue levels of large corporations. And since small businesses often have lower profit margins, additional spending can have a significant negative impact on small businesses.
Twitter fired almost 50% of its employees last week. Musk said he had no choice because the social network was losing more than $4 million a day. Before the layoffs, Twitter blocked access to its offices and told employees to wait at home for the company’s announcement. Twitter co-founder and former CEO Jack Dorsey has apologized for the massive layoffs and said he had allowed the company to grow too fast.
Edited by Prakriti Arora