Meta, the parent company of social media giant Facebook, Instagram and WhatsApp, is reportedly planning to lay off thousands of employees within the week, according to an anonymous source. This news comes just months after Meta cut around 13% or 11,000 employees in January of this year. This latest round of layoffs is expected to be finalized before CEO Mark Zuckerberg takes parental leave to welcome the birth of his third child with his wife, Priscilla Chan.
The tech sector has seen many companies downsizing their workforce in recent years, from Twitter to Microsoft. Facebook’s decision to trim its workforce did, however, receive a positive response on Wall Street, with its stock share rising to US$185.89 (+0.99, +0.54%).
The decision to lay off employees is not uncommon in the tech industry, where companies are constantly evolving and adapting to changing market conditions. However, the scale of these layoffs has raised concerns among some industry analysts.
According to sources familiar with the matter, the layoffs are expected to primarily affect employees working on the company’s hardware and virtual reality projects. Despite significant investments from Meta, these divisions have been struggling to gain traction in the market.
The move is part of a broader strategy by the company to refocus its efforts on its core social media and advertising businesses, which generate the majority of its revenue. Facebook’s core platforms, including Facebook, Instagram, and WhatsApp, have continued to grow despite increased competition from up-and-coming social media platforms like TikTok and Clubhouse.
The decision to lay off employees has been met with mixed reactions from industry experts. Some argue that it is necessary to ensure the company’s long-term viability, while others worry that it could undermine morale and lead to a brain drain of talent.
Regardless of the outcome, it is clear that Meta is facing significant challenges as it seeks to maintain its position as a leading player in the tech industry. The company will need to navigate these challenges carefully if it hopes to continue to grow and remain relevant in the years to come.