Following job cuts at Twitter, Facebook’s parent company Meta plans to begin “large-scale layoffs” this week in what could be the biggest cut yet at a “major tech corporation in a year of layoffs of the technology industry,” said a media report.
The Wall Street Journal reported that the layoffs at Meta, which has more than 87,000 employees, are expected to affect “many thousands of employees” and could come as early as Wednesday.
The WSJ report said company officials told employees to cancel non-essential travel starting this week.
“The planned layoffs will be the first large-scale layoffs in the company’s 18-year history. Although smaller on a percentage basis than the layoffs at Twitter Inc. last week, which affected about half of that company’s staff. industry,” the release said.
Meta CEO Mark Zuckerberg said the company will “focus our investments on a small number of high-priority growth areas.” “That means some teams will grow significantly, but most other teams will be flat or shrink over the next year,” Zuckerberg said on the company’s third-quarter earnings call last month. “Overall, we expect to end 2023 as either about the same size or even a little bit smaller organization than we are today.” “Realistically, there’s probably a bunch of people in the company that shouldn’t be here,” Zuckerberg said to employees at a company-wide meeting at the end of June.
The layoffs at Meta come just days after new Twitter owner Elon Musk cut the company’s staff in half following its acquisition of the social media site.
The WSJ reported that Meta began hiring during the pandemic as life and business increasingly shifted online. Meta added more than 27,000 employees in the pandemic years of 2020 and 2021 combined, and added another 15,344 in the first nine months of this year — about a quarter of that in the last quarter.
Meta, whose shares have fallen more than 70 percent this year, highlighted worsening macroeconomic trends, but “investors were also spooked by costs and threats to the company’s core social media business.” “The growth of this business in many markets has stalled amid strong competition from TikTok, and Apple Inc.’s demand users to opt out of having their devices tracked has limited the ability of social media platforms to target ads,” it said.
The report adds that much of Meta’s “rising costs” stem from Zuckerberg’s commitment to Reality Labs, which is the division of the company responsible for virtual and augmented reality headsets, as well as the creation of the Metaverse. Zuckerberg announced “the metaverse as a constellation of interconnected virtual worlds in which people will eventually work, play, live and shop,” the WSJ reported.
The effort has cost the company $15 billion since the start of last year. But despite heavy investment in promoting its virtual reality platform, Horizon Worlds, users are largely unimpressed,” it said.
“I understand that a lot of people may not agree with this investment,” Zuckerberg told analysts during the company’s earnings call last month. “I think people will look back decades and talk about the importance of the work that was done here.”
(This story has not been edited by Devdiscourse staff and is automatically generated by a syndicated feed.)