Facebook parent Meta is gearing up for massive layoffs this week that will affect thousands of its workforce.
Meta Platforms Inc. is planning large-scale layoffs this week in the latest tech job cuts after the industry boomed during the pandemic, The Wall Street Journal (WSJ) reported.
The layoffs are expected to affect thousands of employees, and the announcement is scheduled to come Wednesday, according to people familiar with the matter.
Meta reported at the end of September that it had more than 87,000 employees. Company officials have told employees to avoid non-essential travel starting this week, the people said.
The planned layoffs would be the first large-scale layoffs in the company’s 18-year history. The WSJ reports that the number of Meta employees expected to lose their jobs could be the largest at a major tech corporation in a year that has seen the tech industry downsize.
The Wall Street Journal reported in September that Meta plans to cut costs by at least 10 percent in the coming months, in part through layoffs.
The cuts are expected to be announced this week, following months of targeted cuts that have seen staff head over or their roles eliminated.
“To be precise, the company probably has a lot of people who shouldn’t be here,” Mark Zuckerberg told employees at the company’s general meeting in late June. Meta, like other tech giants, has begun hiring during the pandemic as life and business become increasingly connected to the Internet.
It added more than 27,000 employees in 2020 and 2021 and added another 15,344 in the first nine months of this year, a quarter of what it did in the last quarter. A spokeswoman for Meta declined to comment, citing CEO Mark Zuckerberg’s recent statement that the company is “focusing our investments on a small number of high-priority growth areas.”
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“So that means some teams will grow significantly, but most other teams will stay flat or shrink next year,” he said on the company’s third-quarter earnings call on Oct. 26.
“Overall, we expect to end 2023 as roughly the same size or even a slightly smaller organization than we are now,” he added. Meta shares are down more than 70 percent this year.
The company cited worsening macroeconomic trends, but investors were concerned about its costs and threats to the company’s core social media business, the WSJ reported.
That business’s growth in many markets has stalled amid stiff competition from TikTok, and Apple Inc.’s insistence on choosing to track users’ devices has limited the social media platforms’ ability to target ads.