STORY: The mass layoffs, the first in Meta's 18-year history, follow thousands of job cuts at other major tech companies including Elon Musk-owned Twitter and Microsoft.
“I think this is the beginning of much broader layoffs just across Silicon Valley. In fact, some darker days ahead as this recession is on the doorstep," said Ives.
The pandemic-led boom that boosted tech companies and their valuations has turned into a bust this year in the face of decades-high inflation and rapidly rising interest rates.
"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," Meta Chief Executive Officer Mark Zuckerberg said in a message to employees.
"I got this wrong, and I take responsibility for that," he said.
The company also plans to cut discretionary spending and extend its hiring freeze through the first quarter of 2023. But it did not specify the impacted regions or the expected cost savings from the moves.