New York (PTI): After 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 “big company.” technology in a year that has seen a tech-industry downturn,” a news article said.
The Wall Street Journal reported that the layoffs at Meta, which has more than 87,000 employees, are expected to affect “several thousand employees” and could occur as early as Wednesday.
The WSJ report says company officials have told employees to cancel non-essential travel starting this week.
The planned layoffs would be the first major workforce reductions to occur in the company’s 18-year history. Although smaller in percentage terms than the cuts at Twitter Inc. last week, which affected about half of that company’s staff, the number of Meta employees set to lose their jobs could be the largest yet in a big tech company in a year. which has seen a downturn in the tech industry,” he said.
Meta CEO Mark Zuckerberg said the company will focus its investments on a small number of high-priority growth areas.
So that means some teams will grow significantly, but most other teams will hold steady or shrink over the next year, Zuckerberg said during the company’s third-quarter earnings call last month. Overall, we expect to end 2023 with roughly the same size or even a slightly smaller organization than today.
Realistically, there’s probably a group of people in the company who shouldn’t be here, Zuckerberg told employees at a company-wide meeting in late June.
The layoffs at Meta come just days after new Twitter owner Elon Musk halved the company’s workforce following its acquisition of the social media site.
The WSJ reported that Meta went on a hiring spree during the pandemic as life and business moved more 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 last quarter.
Meta, whose stock has fallen more than 70% this year, highlighted deteriorating macro trends, but investors were also spooked by its spending and threats to the company’s core business in social media.
This company’s growth in many markets has stalled amid fierce competition from TikTok, and Apple Inc.’s requirement that users opt in to having their devices tracked has reduced the ability of social media platforms to target ads, he said.
The report adds that much of Meta’s inflated costs stem from Zuckerberg’s commitment to Reality Labs, which is a division of the company responsible for virtual and augmented reality headsets as well as the creation of the Metaverse. Zuckerberg presented the “metaverse as a constellation of interlocking 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 have been largely unimpressed, he said.
I understand a lot of people might disagree with the investment, Zuckerberg told analysts during the company’s earnings call last month. I think people are going to look back decades and talk about the importance of the work that was done here.