Goal will start with large-scale layoffs this week, according to The Wall Street Journal. The outlet adds that the cut will affect many thousands of employees and is scheduled to be announced next Wednesday.
Those responsible for the company, which has more than 87,000 employees, have already asked employees to cancel non-essential travel starting this week.
If materialized, This will be the first significant headcount reduction in the company’s 18-year history.. And although the percentage is less than that of the cuts of Twitter last week, which affected half of its staff, the number of Meta employees expected to lose their jobs could be the largest to date at a large tech company.
Days ago, the executive president of the company mark zuckerberg It had already anticipated that it would “focus investments on a small number of high-priority growth areas.” “So that means some teams will grow significantly, but most other teams will be flat or shrink over the next year,” he said Oct. 26. “Taken together, we expect to end 2023 with the same size, or even a slightly smaller organization than today.”
The Wall Street Journall reported in September that Meta planned to cut expenses by at least 10% in the coming months, in part through staff reductions.
The cuts come after several months of more targeted headcount reductions in which employees were either managed or had their roles eliminated. “Realistically, there are probably a lot of people in the company who shouldn’t be here,” Zuckerberg told employees at a company meeting in late June.
WSJ remember that Meta, like other tech giants, jumped into hiring during the pandemic, as life and business moved more online. It added more than 27,000 employees in 2020 and 2021, adding another 15,344 in the first nine months of this year, about a quarter of them during the most recent quarter.
Meta’s shares have fallen more than 70% this year. The company has highlighted deteriorating macroeconomic trends, but investors have also been spooked by its high spending and threats to the company’s core social media business.
Meta’s expenses have also risen sharply, causing its free cash flow to drop 98% in the last quarter. Some of the company’s expenses are due to heavy investments in additional computing power and artificial intelligence required to further develop Reels, Meta’s TikTok-like short-form video platform on Instagram, and to target ads with less data.
However, the WSJ details, much of Meta’s rising costs are due to Zuckerberg’s commitment to Reality Labs, a division of the company responsible for virtual and augmented reality headsets, as well as the creation of the metaverse.