The Wall Street Journal said that an announcement was anticipated as soon as Wednesday and that the layoffs might affect “many thousands” of Meta employees.
About 87,000 people worked at Meta as of September 30 across its various platforms, which include the social media sites Facebook and Instagram as well as the messaging service Whatsapp.
CEO Mark Zuckerberg stated that the company’s headcount might actually decline by the end of 2023 in his remarks following Meta’s dismal third-quarter results.
As the technology sector battles economic headwinds, Meta’s most recent intentions come in response to recent statements by other tech companies to halt hiring or reduce their personnel.
On the same day that Stripe and Lyft announced significant layoffs, Amazon imposed a hiring freeze for its corporate headquarters.
A little over half of Twitter’s 7,500 employees were unexpectedly let go last week after Elon Musk just bought the company.
Platforms that rely on advertising, like Facebook and Alphabet’s Google, are experiencing a decrease in advertising spending as a result of inflation and rising interest rates.
In the third quarter, Meta’s profits dropped to $4.4 billion, a 52% year-over-year decline.
The poor results significantly lowered Meta’s stock price, which dropped 25% in one day.
Over the past year, the company’s market value has decreased to $600 billion.
Investors have been concerned about Zuckerberg’s choice to commit large amounts to establishing the metaverse in addition to its ad-supported business difficulties.