SAN FRANCISCO (KCBS RADIO) – First Twitter, now Facebook parent company Meta may be hit with layoffs. Large-scale job cuts could be announced sometime this week, perhaps as soon as Wednesday, according to reporting by the Wall Street Journal.
The layoffs could affect thousands of employees, the paper reported, and the company told employees to cancel nonessential travel this week.
"These layoffs would make Facebook parent Meta the latest in a series of tech companies that have had layoffs over the last few weeks," said CNET Editor-at-Large Ian Sherr.
According to Sherr, it will be hard to tell which of the company's 87,000 employees will be targeted.
Meta has been struggling under mounting regulatory pressure and a decline in advertising revenue. This would be the first time the company has had large-scale layoffs in its 18-year history.
Facebook's stock has also fallen more than 70% so far this year. While the current state of the economy is likely a factor, investors have been critical of the company’s spending and the competition Meta has been facing from other social media platforms, like Tik Tok, according to the paper.
Along with the layoffs, the company is planning to reduce expense by 10% across the board, the paper reported.
The main culprit behind the rising expenses within the company is the new virtual and augmented reality initiative, Reality Labs.
While the new effort has cost around $15 billion so far this year, it has failed to attract the number of users the company had hoped for, according to the paper, with less than 200,000 at last tally.
Meta’s struggles come as Twitter is facing layoffs of an even larger scale, as Elon Musk takes a hatchet to the platform’s regulatory procedures.
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