Meta Prepares For Large-Scale Layoffs This Week: Report

Meta Platforms Inc is planning to begin large-scale layoffs this week that will affect thousands of employees, the Wall Street Journal reported on Sunday citing people familiar with the matter, with...

The Wall Street Journal reported Sunday, citing people familiar with the matter, that Meta Platforms plans to begin large-scale layoffs this week that will affect thousands of employees.

Meta declined to comment on the Wall Street Journal report.

Meta, the parent company of Facebook, predicted in October that a weak holiday quarter and much higher costs next year would wipe out about $67 billion of Meta's stock market value, adding to more than half a trillion dollars in lost value. Already this year.

The disappointing forecast comes as Meta battles slowing global economic growth,

Competition from TikTok, privacy changes from Apple, concerns about massive spending on the metaverse and the ever-present threat of regulation.

CEO Mark Zuckerberg said he expects reverse investments to take nearly a decade to pay off.

In the meantime, he was forced to freeze recruitment,

Shutter projects and teams reorganization to cut costs.

“In 2023 we will focus our investments on a small number of high priority growth areas. This means that some teams will grow advantageously, but most others will remain flat or shrink over the next year. In aggregate, we expect through the end of 2023 to either be roughly the same size ,

Or even a slightly smaller organization than we are today,” Mark Zuckerberg said in his last earnings call in late October.

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