Meta Reportedly Planning Major Workforce Reduction of Up to 20%
Meta is looking to cut costs by laying off up to 20% of its employees, sources say, in the largest round of layoffs since November 2022.
Meta, the parent company of Facebook, is reportedly planning to lay off up to 20% of its workforce in a major cost-cutting move, according to sources familiar with the matter. This would amount to the elimination of roughly 15,800 positions, making it the largest series of layoffs at the company since it terminated 22,000 workers over just a few months between November 2022 and early 2023.
The potential downsizing comes as Meta looks to offset spending on artificial intelligence (AI) and data centers, areas that have become increasingly important for the company as it shifts focus to the metaverse and other emerging technologies. Reuters reports that Meta is seeking to rein in costs amid a slowdown in its core advertising business and concerns about the company's long-term viability.
The impending layoffs would mark a significant change in direction for Meta, which has long been known for its rapid growth and expansive workforce. The company has been grappling with a range of challenges in recent years, including slowing user growth, rising costs, and increased competition from rivals like TikTok.
In a bid to address these issues, Meta has been shifting its focus towards the metaverse and other emerging technologies, such as virtual and augmented reality. However, these efforts have come at a significant cost, with the company's Reality Labs division losing billions of dollars in recent quarters.
The potential layoffs would be the latest in a series of workforce reductions at Meta, following the November 2022 and early 2023 rounds of job cuts. The company has also been scaling back its efforts in the metaverse, with plans to shift resources towards more profitable areas of the business.
As Meta navigates these challenging times, the potential layoffs are likely to have a significant impact on the company's workforce and the broader technology industry. The move underscores the need for Meta to adapt to changing market conditions and find new ways to drive growth and profitability in the years ahead.
Source: The Verge
