On the latest array of multi-billion-dollar multi-national companies’ race on who can fire how many employees, we bring to you victims of Meta’s latest capital efficient drive. Although the victim may be the wrong word to use here. It still holds true that almost 11,000 employees in Meta are losing their jobs. As it stands, will Meta employee severance even be a thing? Will the Meta employees get it in the US?
My apologies. META not Microsoft announces 11,000 workers laid off. Small wonder POLLS show 43% of voters believe they are worse off today. Sadly it’s going to get worse. Please be brave, get smatters and take care.
— therealkiyosaki (@theRealKiyosaki) November 10, 2022
Meta Employees Severance will be paid
- Employees sign a contract and are usually informed pre-hand the possible risks of being employed in a company.
- Usually, companies like Twitter and Facebook do provide stable job security.
- Given how Facebook has operated for over 18 years, it is a shock to everyone who believed in the firmness of the company’s durability.
The state of big tech companies felt almost impeccable. But as we are lately witnessing, big tech is also liable to possible downfall. And as they are, they would do anything to prevent such an outcome. But can they do it while maintaining moral ethics toward their to-be-fired employees?
Mark Zuckerberg has indeed specified details of severance to his employees in his message.
Why is Meta firing its employees?
On 9th November, Meta daddy Mark Zuckerberg in his message apologized to all the talented workers whom he was forced to lay off.
Mark Zuckerberg in his message apologized to the talented individuals and said he takes full responsibility for this downfall. In Meta’s (Facebook formerly) history of 18 years and more, this is perhaps the company’s biggest risk move ever.
- The reasons that Mark stated included a miscalculation on his part in investments, the slowing advertising market, a falling macro economy, and a less-sought-out online economy.
What is Meta doing to avoid bankruptcy?
Mark Zuckerberg in his message to the employees stated that they will take steps to become leaner.
- They will also stop hiring til the end of the first quarter of the financial year. This should result in this being in place til March 2023. The workforce reductions will happen across the board.
- The business teams will be restructured and the divisions of recruiting will also be changed.
- Mark described broad cuts on what he called discretionary spending throughout the company’s spending. This translates to anything in excess that the company doesn’t need or can do without will be done without.
- This also comes in form of real estate footprint curbing which means employees will soon have to share desk spaces across global meta offices. So instead of deploying multiple offices which cost the company a lot in paying rent, taxes, and dues for the place, they’ll simply reduce the number of physical offices.
Meta initially thought of cutting costs by these methods, also including scaling budget reduction, reducing perks, reducing real estate footprint, etc.
What is the Meta Severance for Employees like?
“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 said. So as an added measure, they are having to fire 13% of their global capacity.
A WSJ report states that Meta’s head of human resources Lori Goler said that fired employees will be provided up to four months of salary as severance.
- In his message, Mark Zuckerberg specified that the impacted employees will get their base pay for 16 weeks.
- And for every year they spent in the company they will get base pay worth two additional weeks.
- All the remaining PTO will be paid and health insurance will be provided for six more months.
- Mark also said that through a third-party intervention Meta will ensure that the employees will be given career support and guidance.
- Immigration support will also be given to employees on visas. These will apply on the US and similarly to other nations depending upon local laws.
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