Mark Zuckerberg Can Sack 11,000 Workers But Shareholders Can’t Sack Him: It’s Called ‘Management Entrenchment’
“I want to take accountability for these decisions and for how we got here,” tech billionaire Mark Zuckerberg told the 11,000 staff he sacked this week.
But does he really?
The retrenchment of about 13% of the workforce at Meta, owner of Facebook and Instagram, comes as Zuckerberg’s ambitions for a “metaverse” tank.
The company’s net income in the third quarter of 2022 (July to September) was US$4.4 billion – less than half the US$9.2 billion it made in the same period in 2021.
That’s due to a 5% decline in total revenue and a 20% increase in costs, as the Facebook creator invested in his idea of “an embodied internet – where, instead of just viewing content, you are in it” and readied for a post-COVID boom that never came.
Since he changed the company’s name to Meta a year ago, its s...