Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has initiated a new round of layoffs across several of its key units, including Instagram, WhatsApp, and Reality Labs, according to a report by The Verge on Wednesday. The report, which cites unnamed sources familiar with the matter, did not specify the exact number of jobs affected but noted that the cuts were relatively small.
This latest round of layoffs comes as part of Meta’s ongoing cost-cutting measures, which have seen the tech giant eliminate around 21,000 jobs since November 2022. The company’s CEO, Mark Zuckerberg, has dubbed 2023 as the “Year of Efficiency,” focusing on streamlining operations to improve profitability amid economic challenges and significant investments in emerging technologies such as artificial intelligence and the metaverse.
A spokesperson for Meta confirmed that changes were being made within various teams to align with the company’s long-term strategic goals and location strategies. “This includes moving some teams to different locations and moving some employees to different roles. In situations like these when a role is eliminated, we work hard to find other opportunities for impacted employees,” the spokesperson said. However, Meta did not comment on the number of job cuts in this particular round.
In a separate incident reported by the Financial Times, Meta also fired approximately two dozen employees in Los Angeles. These terminations were linked to alleged misuse of the company’s daily $25 meal credits, with some employees reportedly using the funds to purchase household items such as acne pads, wine glasses, and laundry detergent. These dismissals were unrelated to the broader team restructuring and took place last week, according to the report. Meta declined to comment on this development.
Despite the layoffs, Meta’s stock has performed exceptionally well in 2023, with shares rising more than 60% over the year. In its second-quarter earnings report, the company exceeded market expectations for revenue and provided an optimistic sales forecast for the third quarter, driven by strong digital ad spending across its social media platforms. This has helped cover the costs of Meta’s heavy investments in artificial intelligence and its ambitious push into the metaverse through its Reality Labs division.
As Meta continues to streamline its workforce and operations, the company remains committed to its vision of a more efficient and profitable future, even as it navigates challenges in the tech and digital advertising sectors.
