Meta Platforms (META) plans to implement another round of job cuts in the coming months, with the potential to reduce its workforce by as much as 13%. The Wall Street Journal reported that the layoffs will be conducted in multiple rounds and will affect non-engineering roles, particularly hard. The final count of jobs to be removed is still unclear, but some employees could be informed as early as next week. CEO Mark Zuckerberg previously stated that 2023 will be a “year of efficiency” at Meta.
The company’s business unit, Reality Labs, which produces virtual and augmented reality hardware and software, is also expected to shut down certain projects, including the production of some wearable devices. Despite the planned cuts, shares of Meta rose by 1.5% in after-hours trading on Friday.
The news comes after the company laid off roughly 13% of its workforce in 2022, as part of a restructuring plan to focus more on its metaverse efforts. Meta is one of the largest technology companies in the world, with a market capitalization of over $800 billion.
While the exact number of job cuts is still unknown, the move is in line with the company’s efforts to streamline operations and reduce costs as it focuses on the development of the metaverse. The metaverse is a virtual world that integrates various digital experiences, such as virtual reality, augmented reality, and social media.
The shift to the metaverse is part of Meta’s long-term strategy to expand beyond its core social media platforms, including Facebook, Instagram, and WhatsApp. The company aims to create a new type of digital experience that enables users to interact in a more immersive way.
As the company continues to make changes to its operations, it remains to be seen how these cuts will impact its overall business strategy. However, the positive reaction of investors to the news suggests that they are confident in the company’s ability to navigate these changes and remain a leader in the tech industry.
In summary, Meta Platforms plans to implement job cuts in the coming months, potentially reducing its workforce by up to 13%. The company’s Reality Labs unit is expected to shut down some projects, including the production of some wearable devices. Despite the planned cuts, shares of Meta rose in after-hours trading. The move is part of Meta’s long-term strategy to focus on the development of the metaverse and expand beyond its core social media platforms.