Meta Plans To Lay Off Thousands More Employees

Meta Plans To Lay Off Thousands More Employees

Meta: American Meta Platforms Inc. is preparing a new round of job cuts that will affect thousands of employees, Bloomberg reports citing informed sources. According to them, the cuts will begin this week.

In November 2022, Meta held its first major round of staff cuts in its history, affecting 11,000 people.

A new round of cuts, driven by the need to cut costs to meet the company’s financial targets, could be completed as early as next week. Agency sources say that employees involved in the task want to get it done as quickly as Meta CEO Mark Zuckerberg prepares to take parental leave to care for his soon-to-be-born baby.

In a previous post, The American Meta Platforms Inc will lay off over 11 thousand people, or 13% of the state, as part of a program to reduce costs.

« Not only has online trading not returned to past trends, weakening macroeconomic indicators, but increased competition and loss of advertising revenue have also led to the fact that our revenue has fallen more than I expected, » MarketWatch quotes Meta CEO Mark Zuckerberg as saying to employees. « I was wrong, and I take responsibility for it. »

At the end of September, Meta had over 87,000 employees. In 2020 and 2021, the company hired more than 27 thousand new employees, and in January-September this year, its staff grew by another 15.3 thousand people.

In connection with the announced layoffs, Meta lowered its 2023 spending forecast to $94-100 billion, while it was previously expected to be $96-101 billion. In addition, Capex is planned at $34-37 billion instead of $34-39 billion.

Meanwhile, the company still expects its fourth-quarter revenue to be in the range of $30 billion to $32.5 billion, and spending for the year as a whole will be $85-87 billion.

Meta’s shares are up 4.2% in early trading on Wednesday. Since the start of the year, the company’s capitalization has fallen by 71% to $259.6 billion.