Meta has confirmed it will lay off approximately 8,000 employees, representing 10% of its global workforce, on May 20 as part of a strategic shift to focus on artificial intelligence. The company also announced a generous severance package for affected employees in the US and abroad, and will freeze hiring for about 6,000 open roles.
Meta confirmed that it will cut 10 per cent of its global workforce, laying off around 8,000 employees, as the company increases its focus on artificial intelligence. The development was communicated to employees through an internal memo. The memo, first reported by Bloomberg, was sent by Meta’s Chief People Officer Janelle Gale. In her message, she said the company is implementing internal changes that will result in layoffs affecting about 10 per cent of staff on May 20. The corporation informed staff members that the termination letter will be sent to their personal and work emails, according to an internal document.
“Over the last few weeks we have been working on some changes to our organization that will result in us laying off around 10% of the company on May 20, and closing about 6,000 open roles. Normally, we would want to nail down more details before communicating about this broadly, but since this has leaked, I want to share what I can right now. I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances,” reads the opening para of the memo sent by Meta’s chief people officer, Janelle Gale, reported Business Insider.
A provisional severance payout for the impacted employees is also announced. The document allegedly claims that the business is providing a "generous severance package."
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Severance package for US employees
The message stated, "We will support those who are laid off with a generous severance package which, in the US, will include 16 weeks base pay plus two weeks for every year of employment."
"We will also cover the cost of COBRA health care coverage for US employees and their families for 18 months," the statement continued.
What About Employees Outside US?
“Packages outside the US will be similar but vary by country, as will local timelines and processes. We will also offer career services to support people in finding another role, and immigration support for those who need it. We'll share more of these details in a follow up post ahead of May 20.”
Why This Layoff on May 20?
The statement supports previous estimates that said that 8,000 positions will be eliminated on the same day. With this action, Meta joins a number of significant tech firms, like Oracle, Amazon, and Microsoft, which have also eliminated thousands of jobs in order to concentrate on AI-driven expansion. The decision will have an effect on more than just current employees. Additionally, Meta has declared that it would not proceed with hiring for around 6,000 vacant positions that were originally anticipated to be filled, so freezing a substantial percentage of its planned recruitment.
