The Wall Street Journal reports that Meta is planning significant layoffs

CNN Business

Facebook-parent Meta is reportedly planning the first significant layoffs in its history as the company grapples with a shrinking business and fears of a recession.

The job cuts are expected to affect thousands of workers and could begin as early as this week. The Wall Street Journal reported over the weekend, citing unnamed people familiar with the matter. As per Step, Meta has more than 87,000 employees September SEC filing.

Meta declined to comment on the report.

In a conference call last month to discuss its earnings results for the third quarter, CEO Mark Zuckerberg said he expects the company to end 2023 as “roughly the same size or slightly smaller company than it is today.”

The potential cuts come as tight advertiser budgets and Apple’s iOS privacy changes weigh on Meta’s core business. The company last month reported a decline in its second-quarter earnings and its report Profits are cut in half from previous year. Profits are diminishing as Meta spends billions building a futuristic version of the Internet known as the Metaverse.

Once boasts market capitalization Over $1 trillion Last year, Meta was now worth around $250 billion. ((Meta’s stock opened 5% higher on Monday morning after the job cut reports.)

Meta is far from the only tech company said to be rethinking its workforce. In a stunning transformation of an industry sometimes considered untouchable, A Number of technology companies After seeing rapid growth during the pandemic, they have announced hiring freezes or job cuts in recent months.

Last week, Rideshare Inc Said lift reduces 13% Staffing and payments processing company Stripe said it will cut 14% of its workforce. On the same day, e-commerce giant Amazon said the same Implementation of moratorium on corporate recruitment.

A Facebook competitor was created by Twitter Sweeping cuts Friday under its new owner, Elon Musk, across the company. The cuts affected its ethical AI, marketing and communications, search and public policy group, among other departments.

In the days since, Twitter

Dozens of sacked employees have reportedly been asked to return Bloomberg.

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