Facebook parent Meta is planning a major layoff this week that is expected to affect many thousands of its workforce.
In the latest tech space to be cut after the industry’s rapid growth during the pandemic, Meta Platforms Inc. is planning to launch a large-scale launch this week, according to people familiar with the matter, The Wall Street Journal (WSJ) reported.
Many thousands of layoffs are expected and an announcement is expected as early as Wednesday, according to people familiar with the matter.
Meta reported to have more than 87,000 employees at the end of September. Company officials have already told workers to suspend non-essential travel starting this week, the people said.
The proposed layoffs would be the first wide-ranging reductions to be made in the company’s 18-year history. The number of Meta employees expected to lose their jobs could be the largest for a major technology corporation in a year that has seen the tech industry shrink, the WSJ reported.
The Wall Street Journal reported in September that Target plans to cut expenses by at least 10 percent in the coming months, partly through staff reductions.
The cuts are expected to be announced this week after several months of more targeted staffing reductions in which employees were retrenched or saw their roles eliminated.
“Realistically, there’s probably a bunch of people from the company that shouldn’t be here,” Mark Zuckerberg told employees at the company’s board meeting at the end of June. Meta, like other tech giants, has continued a hiring spree during the pandemic as more lives and businesses become online.
It added more than 27,000 workers in 2020 and 2021, and added a further 15,344 in the first nine months of this year — nearly a quarter of that in the recent quarter. A spokesperson for Meta retracted the comment, referring to Chief Executive Mark Zuckerberg’s recent announcement that the company would “focus our investments on a few high-priority growth areas.”
Also read: Apple’s iPhone output in China has been reduced
“This means that some teams will grow significantly, but most other teams will remain flat or decline over the next year,” he said in the third-quarter earnings call on October 26.
“In the complex, we expect a 2023 end that is either roughly the same size or even a little smaller than we are today,” he added. Meta’s stock has fallen more than 70 percent this year.
The company highlighted crippling financial trends, but investors also weighed in on costs and threats to the company’s core social media, the WSJ reported.
The growth of that business has stalled in many markets amid stiff competition from TikTok, and Apple Inc. The need for users to opt in to their search devices has limited the ability of social media platforms to target them.