Meta Platforms Inc., the parent company of Facebook and Instagram, is planning a new round of layoffs and will fire hundreds of workers as soon as this week.
In an effort to streamline its operations, the largest social networking firm in the world is axing more positions in addition to the 13% reduction in November.
In its previous wave of layoffs, Meta eliminated 11,000 employees, marking its first-ever significant mass dismissal.
According to a February article by Bloomberg News, the corporation has also been trying to flatten its structure by offering buyout incentives to managers and disbanding entire departments it deems unnecessary.
This move is still being finalized and could have an impact on thousands of employees.
In Tuesday’s premarket trading in New York, Meta’s stock increased 1.7%.
As of Monday’s close, the stock had increased 54% since the year’s beginning.
The upcoming set of cuts will not be part of the “flattening” and will be motivated by financial goals, according to the persons who asked to remain anonymous since they were discussing private affairs.
The persons stated that Meta has been asking directors and vice presidents to compile names of staff members who can be let go as a result of a slowdown in advertising revenue and a shift in emphasis to a virtual reality platform called the metaverse.
A Meta representative, however, opted not to comment on the proposals on Monday.
The people said that this stage of layoffs might be completed within the upcoming week.
One individual familiar with the project stated that the team is aiming to finish it before Chief Executive Officer, Mark Zuckerberg, takes a possible impending parental leave for his third child.
The November firings came as a surprise, but the Meta staff had been expecting more layoffs.
According to the sources, 2023 has been named by Zuckerberg as Meta’s “year of efficiency.”
The firm has been promoting this idea to staff members during performance appraisals, which were finished last week.
Employees at the Menlo Park, California-based company recently reported feeling more anxious and their coworkers having low morale.
As stated by the persons, some workers expressed concern about whether they would still receive their bonuses, which are scheduled to be given out this month, if they lost their jobs beforehand.
In February, Meta announced the debut of a paid subscription service called Meta Verified. For subscribers, this service would offer a number of extra benefits and features, including Facebook and Instagram account verification badges.
It will cost $11.99 a month, or $14.99 if purchased through the iOS app, and is primarily geared toward content producers.