Social media and tech giant Meta is reportedly bracing for “large-scale layoffs” this week amid rising costs and a recent crash in its share price.
According to the November 6 Wall Street Journal (WSJ) report citing people familiar with the matter, the planned layoffs could impact thousands of employees across a wide range of divisions among Meta’s 87,000 employees.
It’s currently unclear if the company’s Reality Labs division, which posted a $3.7 billion loss in the third quarter, would see any staff cuts.
Last week, Meta CEO Mark Zuckerberg said the company would focus its investments on “a small number of high-priority growth areas,” including its artificial intelligence (AI) discovery engine and discovery platforms. advertising and commercial messaging in addition to the Metaverse. , indicating:
“So that means some teams will grow significantly, but most other teams will either stay flat or shrink over the next year. […] Overall, we expect to end 2023 with roughly the same size, or even a slightly smaller organization than we are today.
During the earnings call, the billionaire entrepreneur appeared to double down on the company’s investments in these areas, saying he believed they were “on the right track with these investments” and should “continue to invest massively in these areas”.
Related: Zuckerberg’s $100 billion metaverse bet is ‘super-sized and terrifying’ – Shareholder
The report comes just a week after Meta released its third-quarter results, which missed revenue expectations and saw an increase in its operating costs. Its stock price has also taken a hit, with shares of Meta currently priced at $90.79 – down 7.56% in the past five days and 73.19% year-over-year, according to Yahoo. Finance.
The company still appears to be actively hiring in its metaverse division regardless, with its job listing revealing that 38 of its 413 listings relate to augmented reality and virtual reality.
Cointelegraph reached out to Meta for clarification and if there would be any changes to its metaverse division, but did not receive an immediate response.