Meta is implementing layoffs across various units, including Instagram, WhatsApp, and Reality Labs, as The Verge reported on Wednesday, based on sources familiar with the matter.
A spokesperson from Meta explained to Reuters that the company is adjusting its team structures to better align with its strategic long-term goals and location strategies. “This includes relocating some teams and reassigning roles to some employees, and in cases where roles are eliminated, we strive to find alternative opportunities for those affected,” the spokesperson stated.
While The Verge’s report did not disclose the specific number of job cuts, it noted that the reductions were minor. Meta has refrained from commenting on the exact figures.
In a separate incident, the Financial Times reported that Meta terminated approximately two dozen employees in Los Angeles. These staff members allegedly misused their daily $25 meal credits to purchase personal items like acne pads, wine glasses, and laundry detergent.
According to the FT, these firings occurred last week and were unrelated to the broader restructuring efforts. Meta has not provided comments on this report.
Since November 2022, Meta has reduced its workforce by approximately 21,000 positions in an effort to decrease operational costs. CEO Mark Zuckerberg has dubbed 2023 the “Year of Efficiency.” Meta’s stock has risen significantly by more than 60% this year.
Following its latest quarterly earnings, Meta reported revenues that exceeded market forecasts and provided a positive sales outlook for the next quarter. This performance suggests that strong digital advertising revenue on its platforms sufficiently covers the investments in artificial intelligence.
