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Meta reportedly planning thousands more job cuts

Published 03/07/2023, 04:36 PM
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META
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By Geoffrey Smith

Investing.com -- Social media giant Meta Platforms (NASDAQ:META) is planning thousands more job cuts in an attempt to restore profitability, with an announcement due as early as this week, Bloomberg reported late on Monday.

It's only three months since the owner of Facebook and Instagram laid off 11,000 people, or 13% of its total workforce, as founder and chief executive Mark Zuckerberg signaled a pivot away from the expensive bets he has made on new growth projects.

Zuckerberg has said that 2023 will be "the year of efficiency," when the company will slim down radically in response to a weaker advertising environment that has exposed how much technology companies over-hired during the pandemic.

According to Bloomberg, Meta's management has been asking directors and vice presidents to make lists of staff who are surplus to requirements.

The new cuts would come at the end of the company's annual bonus round, something that may make it easier for some employees to accept buyout packages.

Meta stock has risen sharply since Zuckerberg signaled a new focus on profitability over growth at any cost at the end of last year. It's up 53% since January 1st, making it comfortably the best performer among 'Big Tech' names. However, it's still down nearly 3% on a 12-month view, and is down by more than half from its 2021 peak.

Meta stock rose 0.5% in after-hours trading on Monday.

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