Meta Platforms Inc., the parent company of social media giants Facebook and Instagram, is reportedly planning to lay off thousands of employees in an effort to become a more efficient organization. According to anonymous sources familiar with the matter, the layoffs could be announced as early as this week.
This is not the first time Meta has undertaken such a drastic move. In November 2021, the company cut 13% of its workforce, which amounted to around 11,000 jobs. However, the new round of layoffs is separate from that restructuring effort and is being driven by financial targets, according to the insiders.
As part of the new cuts, Meta has reportedly asked directors and vice presidents to identify employees who can be let go. The process is expected to be finalized in the coming week, with some hoping to have it ready before CEO Mark Zuckerberg goes on parental leave for his third child.
The November layoffs were a surprise for the Meta workforce, but another round of firings has been widely anticipated. In fact, Zuckerberg has labeled 2023 as Meta's "year of efficiency," and the company has been communicating that theme to employees during performance reviews.
While the news of layoffs may not come as a shock, it has reportedly caused heightened anxiety and low morale among Meta employees. Some have expressed concern over whether they will receive their bonuses, which are set to be distributed this month, if they lose their jobs beforehand.
Meta has been facing a slowdown in advertising revenue, and the company has shifted its focus to the metaverse, a virtual reality platform. The company has also been working to flatten its organization, giving buyout packages to managers and cutting nonessential teams.
In response to the news of the potential layoffs, a Meta spokesperson declined to comment. However, if the reports are true, it remains to be seen how the job cuts will impact the company's overall performance and its workforce.