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Meta expects to announce massive layoffs this week that could impact thousands as tech bloodbath continues: WSJ

Man holding blue umbrella with back against meta logo.

meta logo.Arnd Wiegmann/Reuters

  • Meta is expected to announce layoffs for thousands of employees as early as Wednesday, WSJ reported.

  • The company has already begun to downsize staff and cut costs in recent months.

  • Meta joins a growing list of tech companies shedding their workforces as a recession approaches.

Meta is expected to announce a massive round of layoffs this week, the Wall Street Journal reported Sunday.

The layoffs could affect “many thousands” of employees and could happen as early as Wednesday, sources told the Journal.

A spokesman for Meta declined Insider’s request for comment, but instead cited CEO Mark Zuckerberg’s recent comments on the company’s third-quarter earnings call that hinted at an impending downsizing.

“In 2023, we will focus our investments on a small number of high-priority growth areas,” he said in October. “So that means some teams will grow significantly, but most other teams will be flat or shrink over the next year. Overall, we expect to end 2023 with either roughly the same size or even a slightly smaller organization than today. “

Meta employees told Insider’s Kali Hays last month that managers had begun asking about “increased intensity,” warning of potential layoffs that could represent anywhere from 10% to 20% of the company’s workforce.

“Zuck’s message was loud and clear: you have three months to prove yourself 200 percent committed or you can quit now if you don’t like it,” said one of the workers.

Meta’s stock plunged 20% last month after the company reported worse-than-expected earnings and drew attention to missteps like spending $4 billion on the Metaverse last quarter.

The layoffs come as a growing list of tech companies begin shedding jobs and many employers brace for a looming economic recession.

On Friday, Twitter laid off an estimated 50% of its employees shortly after Elon Musk took over. Also last week, Stripe cut 14% of its employees and Lyft laid off 700 employees, while GoFundMe, among others, laid off 12% of its team in October.

“It’s going to be a tough time; at the micro level, it will affect many people’s jobs and livelihoods,” Mark Peter Davis, a managing partner at Interplay Ventures, told Insider’s Rob Price and Samantha Stokes.

Read the original article on Business Insider

https://news.yahoo.com/meta-expected-announce-massive-layoffs-213606755.html Meta expects to announce massive layoffs this week that could impact thousands as tech bloodbath continues: WSJ

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