Mark Zuckerberg will not resign despite Facebook’s huge losses

Meta, which runs social media site Facebook, has ruled out the resignation of Mark Zuckerberg as the company’s CEO next year. Earlier this month, the company announced more than 11,000 layoffs.

News website The Leak quoted a source close to the company as saying that Zuckerberg will resign next year. Report was published. Meta’s share price rose by around one percent after this. Responding to the report, Meta spokesperson Andy Stone tweeted that it was false. Meta was once valued at over a trillion dollars. That’s down to about $256 billion. The company’s value has fallen more than 70 percent this year. More than 11,000 workers are being laid off from Meta. This is about 13 percent of the total workforce of the company. The company is facing problems like rising costs and weakness in advertising.

Businesses of tech companies have grown rapidly during the pandemic and the impact has also been reflected in their valuations. Due to inflation and increase in interest rates, the valuation of these companies has come down significantly this year. In this regard, Zuckerberg said in a message to employees, “Weak macroeconomic conditions, increased competition and a decline in advertising have caused our revenue to fall significantly below expectations. I made a mistake and I take responsibility for it.” He had said that the company needs to invest its resources in areas with high growth potential such as AI, advertising and metaverse projects.

Laid-off employees will be paid 16 weeks of base pay plus two additional weeks of base pay for each year of service. Apart from this, the company will also cover six months of healthcare expenses. Besides cutting essential expenses, Meta said he is also considering halting hiring till the first quarter of next year. Meta had grown over the years but earlier this year saw a decline in daily users for the first time.

(This news has not been edited by the NDTV team. It has been published directly from the syndicate feed.)

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