Meta may have spent more than $88,000 per person when it laid off 11,000 in 2022 - Fortune

In November 2022, the institution chopped 11,000 jobs, the biggest successful its past and astir 13% of its workforce. 

Meta paid $975 cardinal connected “Severance and different Personnel,” according to a snapshot of Meta’s equilibrium expanse tweeted by writer Myles Udland, Head of News astatine Yahoo.

He added that erstwhile that fig was divided by the fig of unit laid off, it amounts to an estimated $88,636 per person. 

The tech giant’s quarterly earnings released Wednesday besides showed that it suffered a 55% driblet successful profits arsenic a effect of a $4.2 cardinal restructuring charge. It led CEO Mark Zuckerberg to uncover that the company’s taxable for 2023 volition beryllium the “year of efficiency.” 

Many existent employees are reportedly present braced for even much layoffs successful the coming months contempt the wide costs. Layers of mediate absorption whitethorn beryllium the archetypal to spell portion engineers volition beryllium equipped with much A.I. tools. 

Zuckerberg besides maintained that helium volition proceed to absorption connected the Metaverse and developments successful virtual world offerings adjacent though the study shows its metaverse part Reality Labs reported a nonaccomplishment of $13.7 cardinal for 2022, up from a $10.2 cardinal nonaccomplishment successful 2021.

On the different hand, the quarterly net person shown that Meta surpassed expectations successful quarterly revenue, ad  gross and regular progressive idiosyncratic measures. 

Layoffs person hidden costs 

Layoffs are surprisingly costly—and Meta’s latest figures are not the astir expensive. 

Microsoft is 1 striking example. As a effect of its caller announcement of 10,000 occupation cuts, the tech elephantine said it would instrumentality a $1.2 cardinal complaint to net to relationship for its layoffs’ contiguous costs, including severance payments, payment extensions, accrued vacation, and different costs that whitethorn beryllium contractually required. That amounts to $120,000 per laid-off employee.

Beyond the contiguous costs, companies volition person to walk much wealth connected aboriginal hiring, including onboarding and training, erstwhile the economical clime improves. And, astatine the aforesaid clip arsenic they instrumentality a fiscal hit, cutting experienced unit often implies mislaid productivity, organization cognition and perchance cuts to the enactment pipeline. 

Meta did not instantly respond to petition for comment.