Social media giant Meta is preparing “major layoffs” this week amid rising costs and the recent plunge in its share price.
According to a November 6 Wall Street Journal (WSJ) report, the planned layoffs could affect thousands of employees in many of Meta’s divisions.
It is still unclear whether the Reality Labs division, which posted a loss of $3.7 billion in the third quarter, will lay off staff.
Last week, Mark Zuckerberg, CEO of Meta, said the company would focus its investments on “a few high-priority growth areas.” In addition to the Metaverse, this should include the Artificial Intelligence (AI) Discovery Engine and the advertising and business messaging platforms.
So that means some teams will grow significantly, but most other teams will stay the same or shrink in the coming year. Overall, by the end of 2023, we expect to be about the same size or even slightly smaller than today. .”
When discussing company results, the billionaire entrepreneur expressed strong belief in the company’s investments in these areas. He said the company was “on the right track with these investments” and “should continue to invest heavily in these areas.”
A week ago, the results for the third quarter were announced. Meta fell short of revenue expectations and saw an increase in operating expenses. The company’s share price also came under severe pressure: Meta shares are currently trading at $90.79. According to Yahoo Finance, it is down 7.56 percent in the past five days and 73.19 percent year-over-year.
However, the company continues to actively recruit for its Metaverse division. The company’s job portal shows that 38 of the 413 offers are related to augmented reality and virtual reality.