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Facebook owner Meta to lay off 11,000 staff

Photo: Josh Edelson / AFP

| By AFP | Juliette Michel with Joseph Boyle in Paris |

Facebook owner Meta will lay off more than 11,000 of its staff in “the most difficult changes we’ve made in Meta’s history,” boss Mark Zuckerberg said on Wednesday.

He said the cuts represented 13 percent of the social media titan’s workforce and would affect its research lab focusing on the metaverse as well as its apps, which include Facebook, Instagram and WhatsApp.

The tech industry is in a serious slump and several major firms have announced mass layoffs — Twitter’s new owner Elon Musk fired half its staff last week.

“I want to take accountability for these decisions and for how we got here,” Zuckerberg said in a note to staff.

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“I know this is tough for everyone, and I’m especially sorry to those impacted.”

Ad-supported platforms such as Facebook and Google are suffering with advertisers looking to cut costs as they struggle with inflation and rising interest rates.

Zuckerberg told his 87,000-strong staff he had expected the boost in e-commerce and online activity during the Covid pandemic to continue, but added: “I got this wrong, and I take responsibility for that.”

The measures were also a message to Wall Street, where the company’s poor performance has sent the Meta share price plummeting by 70 percent since the start of the year.

The move on Wednesday was welcomed by investors with Meta shares showing major gains for the day of nearly six percent just ahead of the closing bell in New York.

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The downturn has affected companies across the sector, with Apple and Amazon also recently announcing results that disappointed investors.

But Meta also faces some unique problems of its own.

The California-based company is being squeezed by Zuckerberg’s decision to devote billions of dollars to developing the metaverse, an immersive version of the web accessed via virtual reality headsets.

Zuckerberg renamed the company Meta a year ago to reflect the commitment to the project, but the division working on metaverse technology has since made losses of more than $3.5 billion.

Facebook is also struggling to fend off Chinese-owned TikTok, the now dominant social media for younger users to the detriment of Meta’s Instagram.

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‘Last resort’

Mike Proulx, a research director at Forrester, said “Meta is amidst an identity crises” and that severe cost-cutting was “inevitable.”

“The company has one foot in a risky long-term metaverse bet and another foot failing to compete with TikTok,” he added.

Zuckerberg has hinted several times this year that belt-tightening measures were just around the corner and said in his letter on Wednesday that staff layoffs were a “last resort.”

Meta would also keep a hiring freeze going into next year, he said, and other spending cuts were envisaged.

“Fundamentally, we’re making all these changes for two reasons: our revenue outlook is lower than we expected at the beginning of this year, and we want to make sure we’re operating efficiently,” Zuckerberg wrote.

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In the US, terminated Meta employees will receive four months severance pay and two additional weeks of pay for each year of service. 

Last month, Meta announced profits of $4.4 billion in the third quarter, a 52 percent decrease year-on-year.

The slump in profits comes despite its platforms dominating the world in terms of users — Facebook alone claims to have around two billion people who log on daily.

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International

U.S. Issues Urgent Evacuation Call for Citizens in Venezuela

The U.S. Department of State on Saturday urged American citizens currently in Venezuela to leave the country “immediately,” citing an increasingly unstable security situation.

In a security alert, the State Department warned of reports involving armed militia groups, known as colectivos, that have set up checkpoints and are stopping vehicles to search for evidence of U.S. citizenship or support for the United States.

The warning comes one week after U.S. forces captured Venezuela’s ousted president, Nicolás Maduro, and his wife, Cilia Flores, during a bombing operation in Caracas. Both were transferred to New York to face trial on narcotics trafficking charges.

U.S. authorities emphasized that the volatile security environment poses significant risks to American nationals and reiterated their long-standing advisory against travel to Venezuela.

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International

U.S. strike in Caracas killed 32 cuban security officers, experts say surprise was crucial

Two days after a U.S. military attack on a military complex in Caracas, Havana confirmed that 32 members of its security forces were killed in the operation, some of whom were likely responsible for protecting Venezuelan leader Nicolás Maduro. The Venezuelan government also reported that 23 of its own military personnel died during the assault.

Of the Cuban dead, 21 belonged to the Ministry of the Interior, which oversees intelligence services, and 11 were from the Revolutionary Armed Forces. No official information has been released regarding potential injuries.

Experts consulted by AFP agreed that the element of surprise was the key to the success of the U.S. military operation, which was meticulously prepared over months and kept entirely secret. “Cuban intelligence … convinced the Maduro regime and its security agencies that the United States would never attack Venezuelan territory,” explained José Gustavo Arocha, a former Venezuelan army officer and expert at the Center for a Secure Free Society, a U.S. defense think tank.

Fulton Armstrong, a former U.S. intelligence officer and Latin America researcher at American University in Washington, also highlighted the failure to anticipate the attack and to detect U.S. helicopters entering Venezuelan airspace, noting that even a five- to ten-minute warning could have made a significant difference for the guards and for Maduro.

U.S. forces additionally benefited from “incredible” real-time intelligence provided by stealth drones to monitor movements of the Venezuelan leader, according to experts. A highly sophisticated combat team was deployed, and analysts believe the order to “fire to kill” was likely given.

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Paul Hare, former British ambassador to Cuba and Venezuela, added that Cuban intelligence also underestimated the extent of U.S. access to internal cooperation within Venezuela’s security apparatus, contributing to the operation’s success.

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International

Report: Vatican mediation included russian asylum offer ahead of Maduro’s capture

The Vatican reportedly attempted to negotiate an offer of asylum in Russia for Venezuelan President Nicolás Maduro before his capture by U.S. forces last Saturday, according to The Washington Post.

The U.S. newspaper reported that Vatican Secretary of State Cardinal Pietro Parolin spoke with U.S. Ambassador to the Holy See Brian Burch about a supposed Russian proposal to grant Maduro asylum. A source familiar with the offer said that what was proposed “was that he would leave and be able to enjoy his money,” and that part of the plan involved Russian President Vladimir Putin guaranteeing Maduro’s security.

Despite these diplomatic efforts, the United States carried out a military operation that resulted in Maduro’s capture and detention, along with his wife Cilia Flores, who are now being held in New York on narcoterrorism charges.

The Washington Post also noted that U.S. President Donald Trump may have invited Maduro to Washington for in-person discussions about safe conduct, an offer that Maduro reportedly declined.

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