Facebook parent Meta Platforms Inc (META.O) has delayed finalizing the budgets of multiple teams as it prepares a fresh round of job cuts, the Financial Times reported on Saturday.
In recent weeks there had been a lack of clarity surrounding budgets and future head count, the FT reported, citing two Meta employees familiar with the situation.
Meta did not immediately respond to a Reuters request for comment outside of normal business hours.
Earlier this month, Meta announced that it expects its 2023 expenses at between $89 billion and $95 billion, with CEO Mark Zuckerberg calling the period a “Year of Efficiency.”
The WhatsApp owner had cut more than 11,000 jobs or 13% of its workforce in November, following such tech companies as Amazon.com Inc (AMZN.O) and Microsoft Corp (MSFT.O) which have announced thousands of layoffs due to the economic downturn.
Source https://www.reuters.com/
The tech giant, Facebook, is reportedly planning to implement a fresh round of layoffs across its companies. This is according to a report by the Financial Times which states that parent company, Meta, is delaying setting budgets for the teams until a decision has been made.
This fresh round of layoffs is thought to be focused on numerous divisions including marketing, policy, and sales and may involve hundreds of job cuts across the group. Meta, the company that owns Facebook, WhatsApp and Instagram, has allegedly already informed employees about the delays to budgets due to an impending review of its operations.
Sources have suggested that the fresh round of layoffs are being implemented to help online ads business – which accounts for the majority of its income. Furthermore, despite the adherence to cost-cutting measures, some experts have stated that they expect Meta to significantly increase its investments in technology and personnel as it looks towards future growth in 2021.
However, it is thought that the job cuts and cost-cutting measures are part of a broader, on-going reshuffling of Meta’s operations. The company is believed to be adapting their operations to the current environment by streamlining operations to reach profitability.
Though the exact size of the job cuts, or when they will take effect, is still unknown at this time, the report from Financial Times has raised concerns from Meta’s many investors, employees and partners.
It remains to be seen how the fresh round of layoffs will affect the company’s operations, financial performance and impact on growth in 2021.