Meta would announce “large scale” layoffs next week

Facebook parent company Meta could announce large-scale layoffs as early as next week, according to the Wall Street Journal. The outlet reports that the company plans to cut “several thousand” employees, with an announcement coming as early as Wednesday. Meta currently employs over 87,000 people. The cuts could be the largest workforce reduction by a tech company this year, surpassing layoffs made by Twitter Friday. The cuts would also represent the first extensive restructuring in Meta’s history.

Meta declined to comment. A spokesperson pointed to Engadget to a statement made by CEO Mark Zuckerberg during the recent third quarter earnings call. “In 2023, we will focus our investments on a small number of priority growth areas. So that means some teams will grow significantly, but most other teams will either stay flat or shrink over the next year,” he said. “Overall, we expect to end 2023 with roughly the same size, or even a slightly smaller organization, than we are today.”

As The newspaper points out, Meta grew significantly in the first two years of the coronavirus pandemic, adding more than 27,000 employees in 2020 and 2021. The company’s hiring spree continued through the first nine months of 2022. , during which time it recruited 15,344 additional employees . While the company has been a major beneficiary of the pandemic, its fortunes have changed in recent months. In July, the company announced its first drop in income. The company blamed its recent struggles on fierce competition from TikTok and the release of the controversial Apple App Tracking Transparency Feature.

At the same time, Mark Zuckerberg’s offer on the Metaverse has so far failed to create new revenue opportunities for the company while costing it dearly. Since the start of 2021, Meta has spent $15 billion to mainstream virtual and augmented reality with little success. The company expects to lose even more money on the project in 2023.

Previous Top Wall Street analysts say buy stocks like AMD and Chegg
Next Sofwave Medical Announces Third Quarter 2022 Financial Results and Business Highlights