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The Wall Street Journal reported on Sunday, citing people familiar with the matter, that Meta Platforms Inc plans to start mass layoffs this week that will affect thousands of employees and plans to announce as early as Wednesday.
Meta declined to comment on the WSJ report.
Facebook’s parent company Meta in October predicted a weak holiday quarter and significantly higher costs next year, wiping about $67 billion off Meta’s stock market value and more than $500 billion in value already lost this year.
The disappointing outlook comes at a time when Meta is dealing with slowing global economic growth, competition from TikTok, privacy changes from Apple, huge spending on the Metaverse and ongoing concerns about regulatory threats.
CEO Mark Zuckerberg has said he expects the Metaverse investment to take about a decade to bear fruit. At the same time, he had to freeze hiring, shutter projects and restructure teams to cut costs.
“In 2023, we will focus our investments on a small number of high-priority growth areas. This means that some teams will grow significantly, but most others will remain flat or shrink over the next year. Overall, we expect that by 2023 At the end of the year, the company will either be about the same size as we are now, or even slightly smaller,” Zuckerberg said on his last earnings call in late October.
The social media company slashed plans to hire engineers by at least 30% in June, and Zuckerberg warned employees to prepare for a recession.
Meta shareholder Altimeter Capital Management had said in an open letter to Mark Zuckerberg that the company needed to streamline through layoffs and capital expenditures, adding that Meta had lost investor interest as it ramped up spending and pivoted to Metaverse. confidence.
Several tech companies, including Microsoft, Twitter and Snap, have cut jobs and reduced hiring in recent months amid slowing global growth due to rising interest rates, rising inflation and the European energy crisis.
(Reporting by Mrinmay Dey in Bengaluru; Editing by Diane Craft)
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