Facebook and Instagram parent Meta Platforms is planning thousands more layoffs, with some staffers expected to be shown the door in the next few days.
The new cuts, as reported by Bloomberg, will come on top of the 11,000 workers who lost their jobs in November, which were the first major layoffs at the social media company, whose history dates to 2004. CEO Mark Zuckerberg said in a blog post at the time that the cuts were “some of the most difficult changes we’ve made in Meta’s history.”
Bloomberg noted the new cuts will come on top of efforts to downsize its management.
The new layoffs are being driven by financial targets and come at a time when many tech companies are in the midst of widespread retrenching following huge expansions during the pandemic. Google, Amazon, Microsoft, Yahoo and Zoom, along with dozens of smaller Silicon Valley firms, have all cut staffs, while social media rival Twitter has reduced its workforce by more than 5,000 since Elon Musk bought the company in October.
Meta last month reported revenue for the 2022 fourth quarter fell to $32.17 billion, down 4% from the last three months of 2021. Net income fell 55% to $4.7 billion for the fourth quarter and slid to $23.2 billion for all of 2022, down 41% from the prior year.
The results reflected an enormous increase in expenses and the slowdown in advertising seen across multiple industries.
As part of the financial release, Zuckerberg said that the “management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization.”
Meta has since asked directors and vice presidents to make lists of employees that can be let go, Bloomberg reported, citing people familiar with the company’s operations.
The Menlo Park, California, company could not be immediately reached for comment Tuesday. Meta declined to comment on the original report.
The new layoffs could be finalized within the next week, Bloomberg said. Plans call for the decisions to be made before Zuckerberg exits for parental leave after his third child’s imminent birth, one person told the outlet.
A new round of cuts has been widely anticipated by Meta staffers, who have been subject to a round of performance reviews that were completed last week, the report said, citing “heightened anxiety and low morale among colleagues” along with worries that those who lose their jobs will also lose out on bonuses, which are set to be distributed this month.
Meta last week cut the price of its Quest virtual reality headsets in part due to lackluster demand.
Shares of Meta Platforms gained $2.88, or 1.5%, to $187.78 in morning trading. The stock has changed hands between $88.09 and $236.86 in the past 52 weeks, and has risen 50% since the start of the year.