Meta Platforms Inc., the parent company of Facebook and Instagram, is reportedly planning for radical cuts. These cuts, we’re told, will likely affect up to 20% of its workforce. Depending on how this decision is executed, it would result in potential loss of tens of thousands of jobs at this tech behemoth. Meta is a massive company, and as of December 31, 2022, directly employed nearly 79,000 people over its numerous lines of business.
The possible layoffs are occurring, as Axios noted, against a difficult economic backdrop for tech firms. Meta, like many other companies in tech, has been under mounting pressure to cut the fat and save some bucks. Investors have been clear that they want the company to realize a new level of profitability, and as such, the company has had to look at drastic measures.
As the conversation around possible layoffs has reportedly heated up, insiders say that’s Meta trying to grapple with the reality of a market it can no longer dictate. The streaming giant has faced challenges with slowing revenue growth and user churn, causing the company to now readjust its workforce requirements. The reported consideration of layoffs reflects a broader trend in the tech sector, where many companies are re-evaluating their staffing strategies in light of economic uncertainties.
Meta’s upper management has not yet publicly announced any plans for additional layoffs. Behind-the-scenes conversations suggest that the company is indeed preparing for potential layoffs. Analysts believe that if these layoffs occur, they could significantly impact teams involved in product development, marketing, and support services.
Meta’s lobbying hard, and making moves to get ahead of any possible legislation. It is still all in on creating the metaverse and improving its core social media apps over the decade+ term. Their leadership is presented with a very tricky conundrum. With an eye toward equitable outcomes, they need to weigh ambitious workforce goals against the reality of likely short-term job losses.
