Meta's severance costs totalled $975 million for the fourth
quarter, but it said some of the cost will be offset by "decreases in
payroll, bonus and other benefits expenses." Facebook's parent company
axed more than 11,000 employees — about 13% of its headcount — in November.
CEO Mark Zuckerberg said in a blog post on November 9 that
his decision to increase its investments "did not play out" the way
he had expected.
Meta could see its severance cost climb higher in coming
months, with growing speculation that more layoffs are likely. The company said
in an earnings call this week that it "may incur additional restructuring
charges as we progress further in our efficiency efforts." Zuckerberg also
said that the November layoffs were "the beginning of our focus on
efficiency."
Microsoft will incur costs of $800 million from severance
pay, it said in its second quarter results. The company laid off around 1,000
employees in October after it ended contracts of hundreds of recruiters and
others working in talent-acquisition in August. In January, it announced 10,000
job cuts, warning employees of "times of significant change."
Amazon's severance package spend amounted to $640 million in
the fourth quarter of 2022. CEO Andy Jassy said on January 4 in a memo that the
company would cut 18,000 jobs from across its Amazon Stores and People Experience
and Technology Solutions divisions.
Jassy said at the time: "This year's review has been
more difficult given the uncertain economy and that we've hired rapidly over
the last several years."
Alphabet expects its exit package costs to range from $1.9 billion
to $2.3 billion. Sundar Pichai, CEO of Google's parent company Alphabet,
announced the company would lay off 12,000 employees, or 6% of its global
workforce, on January 20.
Pichai told employees in an email that the company had seen
"dramatic growth" over the past two years and that it "hired for
a different economic reality" compared to what it faces today.
Meta, Amazon, Microsoft and Alphabet did not respond to
Insider's requests for comments.
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