Mark Zuckerberg-led Meta Platforms is planning to lay off thousands of employees this week, The Wall Street Journal report said.
The large-scale job cuts are expected to begin from Wednesday. The planned layoffs would be the first broad head-count reductions to occur in the company’s 18-year history.
The Facebook and Instagram parent company reported over 87,000 employees (as of September).
The company declined to comment, referring to Mark Zuckerberg’s recent statement that the company would focus investments on a small number of high priority growth areas.
In June, Meta’s chief product officer Chris Cox warned employees of serious times, saying that the workers must execute flawlessly in an environment of slower growth.
Mark Zuckerberg, during the company’s earnings call last month, said: “In 2023, we’re going to focus our investments on a small number of high priority growth areas.”
“So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year. In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today,” Mark Zuckerberg had mentioned.
Meta posted another quarterly revenue decline in Q3 as investors began to lose faith in its loss-making, billion-dollars metaverse dream.
In the third quarter (Q3), Meta’s revenue declined 4 percent to $27.7 billion. This decline was owing to Meta’s huge losses in Reality Labs, Meta’s virtual reality division, which lost $3.672 billion in Q3.
Meta investors have called on the company to reduce its workforce by at least 20 per cent and stop making investments in metaverse.