Mark Zuckerberg's Meta Platforms is set to lay off thousands of employees, reports have said, underscoring the troubles the Facebook parent has been going through of late.
The Wall Street Journal reported on Sunday that an announcement on the job cuts could be made as early as Wednesday.
In October, Meta's grim quarterly outlook had wiped nearly $67 billion off Meta's stock market value. Meta's trouble range from slowing global economic outlook, rising competition from TikTok and a worsening battle with Apple on privacy settings. Besides analysts assess that Zuckerberg's huge metaverse gamble has been a drain on the company.
"In 2023, we're going to focus our investments on a small number of high priority growth areas. So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year. In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today" Zuckerberg said in October.
In late September, Zuckerberg said that Meta was freezing hiring across the board and that layoffs would happen in the future. "Our plan is to steadily reduce headcount growth over the next year. Many teams are going to shrink so we can shift energy to other areas," Zuckerberg said during an internal conference call with the employees.
Altimeter Capital Management, which holds significant shareholding in Meta, had warned earlier that the company needs to cut jobs and streamline operations to remain competitive.
Zuckerberg had warned that Meta, which also owns social media giant Instagram, was facing one of the worst downturns in its history and that job losses are certain in the near future.
Meta's long-drawn privacy battles with Apple has also been a headache for Zuckerberg. Last week Apple stipulated that iOS developers have to give Apple a 30 percent cut on the sales they receive using the 'boosts' option for posts on social media apps. This will directly hit Facebook and Instagram as these apps allow people make payments to boost the reach of their posts.