WSJ: Meta plans large-scale layoffs

Meta plans to cut thousands of employees. This is reported by The Wall Street Journal, citing informed sources.

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As of the end of the third quarter, the company employed 87,000 people.

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In 2020–2021, Meta hired more than 27,000 employees, and in the first nine months of this year it filled another 15,344 positions.

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Top management plans to issue the corresponding statement on November 9.

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Employees have been instructed to cancel planned business trips.

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Mass layoffs could be the first in the company’s 18-year history. In absolute terms, they could be the largest in the IT sector this year.

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A company spokesperson declined to comment, noting CEO Mark Zuckerberg’s pledge to focus investments on a narrow set of priorities. The remarks came during a press briefing with analysts following the release of the third-quarter results.

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“By the end of 2023, I expect we will be an organization that is the same size or slightly smaller than today,” Zuckerberg promised.

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In September, the publication reported plans to cut costs by at least 10 percent, including through layoffs.

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On the eve of Meta’s third-quarter results, Altimeter Capital Management urged Zuckerberg to reduce personnel costs by at least 20 percent, raise the investment program by at least $5 billion, and cap Reality Labs’ development spending at $5 billion per year.

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As reported, in July–September 2022 the loss of Reality Labs, the metaverse unit within Meta, amounted to $3.7 billion ($9.4 billion for the year to date).

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In October Meta confirmed that it regards the metaverse as the future of humanity.

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