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Meta to cut jobs as it deals with slow growth and increasing competition

By Nithya Bose in US business news, posted September 22, 2022

Meta is preparing to cut costs by at least 10 percent, including job cuts as the social-media giant deals with sluggish growth and stiff competition.

The recent move by the tech giant has been revealed by current and former managers who are familiar with the matter.

Meta has started to reduce employees considerably by restructuring departments.

Staff who are affected now have a short timeframe to seek new positions within the organization.

The strategy reportedly helps the firm to make the reductions without having to lay off far higher numbers of staff.

However, it is rumored larger cuts are on the way at Mark Zuckerberg's social media giant.

Sources told the Wall Street Journal major savings will come through staff cuts while the firm also plans reductions to overhead and consulting budgets.

The measures follow weeks of public discussion by Meta officials about the necessity for recruiting freezes and "ruthless prioritization" of its business while avoiding the term "layoffs."

In response to this action, Meta spokesperson Tracy Clayton cited CEO Zuckerberg's July comments.

He stated when business pressures escalate, the firm will need to allocate funds toward corporate priorities.

Mr Clayton said: “We’ve been public about the need for our teams to shift to meet these challenges.”

He said allowing displaced employees to apply for new jobs is a method of maintaining talent that Meta may otherwise lose.

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He refused to reveal how many staff were affected by the latest changes.

Since the third quarter of last year, the firm has been reducing its operating expense guidance, but it has not previously indicated that it will reduce staff by means other than natural attrition.

Some Meta employees refer to the process of reapplying for roles within a restricted timeframe as a kind of human-resources purgatory known as the "30 Day List."

Meta has long maintained a policy of terminating employees whose positions are eliminated if they cannot find new employment within a month.

Meta reported having 83,553 employees at the end of the second quarter, a 32 percent increase over the previous year.

Source: The Wall Street Journal

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