Facebook’s parent company, Meta Platforms, plans to lay off thousands of employees this week, marking the first wide-ranging layoffs in the social media platform’s history, The Wall Street Journal reported Sunday.
The cuts come on top of wider reductions in the tech industry, with Twitter, Snap, Microsoft and other companies cutting staff in recent months.
A spokesperson for Meta declined to comment Sunday, but directed FOX Business to comments CEO and co-founder Mark Zuckerberg made during a third-quarter earnings call last month.
“In 2023, we will focus our investments in a small number of high-priority growth areas,” Zuckerberg told investors Oct. 26. “So that means some teams will grow significantly, but most other teams will either stay flat or shrink next year.”
Zuckerberg added that Meta expects to “end 2023 with roughly the same size or even a slightly smaller organization than we are today.”
Meta stock is down about 73% so far this year.
|Teleprinter||Security||Last||To change||To change %|
|META||META PLATFORMS INC.||90.79||+1.88||+2.11%|
META WARNS 1M FACEBOOK USERS ABOUT ANDROID AND IOS APPS USED TO STEAL LOGIN INFORMATION
Altimeter Capital, a meta-investor, last month sent an open letter to Zuckerberg and the tech giant’s board, calling on them to cut the company’s workforce by 20%.
“Like many other companies in a zero rate world – Meta has drifted into the land of excess – too many people, too many ideas, too little urgency,” wrote Altimeter CEO Brad Gerstner, in the letter. “That lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes.”
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
Zuckerberg renamed Facebook to Meta last year as the company focused on the metaverse, a move that has struggled to gain traction.
Meta employed 87,300 people at the end of September, which represented a jump of 28% compared to the previous year.