Facebook Parent Meta Platforms Prepares Mass Layoff This Week: WSJ

Meta Platforms Inc plans to begin large-scale layoffs this week that will affect thousands of employees, the Wall Street Journal citing people familiar with the matter, with an announcement planned for Wednesday.

Meta He declined to comment on the report. WSJ.

goal matrix Facebookforecast in October a weak quarter and significantly higher costs next year, wiping about $67 billion from the market value of Meta Platformsadding to the more than half a trillion dollars in value already lost this year.

The disappointing outlook occurs when Meta faces slowing global economic growth, competition from TikTokthe privacy changes of Appleconcerns about massive spending on the metaverso and the ever-present threat of regulation.

CEO Mark Zuckerberg has said that he hopes that investments in the metaverso take about a decade to bear fruit. Meanwhile, he had to freeze hiring, shut down projects and reorganize teams to cut costs.

“In 2023, we’re going to focus our investments on a small number of high-priority growth areas. That means some teams will grow significantly, but most other teams will be flat or shrink over the next year,” he said. Zuckerberg at the last results call in late October.

“Taken together, we look forward to finishing 2023 as an organization roughly the same size or even slightly smaller than we are today,” he added.

The social media company had in June cut plans to hire engineers by at least 30% and Zuckerberg warned employees to prepare for an economic downturn.

Altimeter Capital Managementshareholder of Metahe had previously said – in an open letter to Mark Zuckerberg– that the company needs to optimize itself by job cuts and capital expenditures, adding that Meta lost investor confidence by increasing spending and turning to the metaverso.

Several technology companies including Microsoft Corp., Twitter Inc. and Snap Inc. have cut jobs and reduced hiring in recent months as global economic growth slows due to higher interest rates, rising of inflation and an energy crisis in Europe.

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