According to people familiar with the situation, Facebook parent company Meta Platforms Inc. plans to start broad job cuts on Wednesday as part of a strategy to decrease costs at the social media giant in the wake of dismal profits and a decline in sales.
According to the sources, who declined to be named discussing personal information, employees who will be impacted will be informed starting on Wednesday morning, and Chief Executive Officer Mark Zuckerberg spoke to executives on Tuesday to prepare them for the cuts. According to the Wall Street Journal, Zuckerberg claimed responsibility for the company’s “missteps” during the executive call.
Requests for response from a Meta spokeswoman were not immediately entertained.
Late in September, zuckerberg informed staff that Meta planned to reduce spending and reorganise teams. A recruiting freeze was established by the Menlo Park, California-based business, which also owns Instagram and Whatsapp. According to the CEO, Meta expects headcount to be lower in 2023 than it is this year. According to Insider, the corporation which employed more than 87,000 people as of September 30 is anticipated to lose around 10% of its workforce. The Reductions, which are a part of the first significant budget cut since the founding of Facebook 2004, are due to a sharp decline in digital advertising revenue, a shaky economy on the verge of a recession, and Zuckerberg’s significant investment in the metaverse, a speculative effort in virtual reality.
The layoffs at Meta come after those at Twitter Inc., which last week eliminated almost 50% of its personnel after selling itself to Elon Musk. Those layoffs were chaotic, and many workers discovered they were no longer employed when their access to Slack or email was suddenly shut off. Musk claimed that the actions were required to stop the social network’s losses. Later, he asked a few sacked employees to come back.
The parent company of the competing app Snapchat, Snap Inc., said in August that it will reduce its personnel by 20%.