Meta Platforms Inc., the parent company of Facebook and Instagram, is preparing for another round of layoffs, with plans to cut thousands of jobs as early as this week, according to sources familiar with the matter.
This new wave of layoffs follows a significant 13% reduction in the workforce last November, where Meta slashed 11,000 positions in its first major layoff.
The company is continuing its efforts to become more efficient by streamlining its operations, including offering buyout packages to managers and cutting nonessential teams.
Shares of Meta rose 2.3% to $189.21 on Tuesday, continuing a trend that has seen the stock rise by 54% since the beginning of the year.
The upcoming layoffs are reportedly driven by financial targets and are distinct from the ongoing organizational “flattening” initiative.
Meta has been asking directors and vice presidents to identify employees who can be let go.
This round of layoffs could be finalized within the next week, with the timing potentially aligning with CEO Mark Zuckerberg’s imminent parental leave for his third child.
The November layoffs took employees by surprise, but this upcoming round has been widely anticipated within the company.
Zuckerberg has labeled 2023 as Meta’s “year of efficiency,” a theme that has been emphasized to employees during recent performance reviews.
Workers at Meta’s Menlo Park headquarters have reported increasing anxiety and low morale, with concerns about whether they will receive their bonuses, which are scheduled for distribution this month, if they are laid off beforehand.
In addition to layoffs, Meta has been making strategic moves to increase revenue, including launching a subscription service called Meta Verified.
This service, primarily targeted at content creators, offers Facebook and Instagram account verification badges and other perks for $11.99 per month, or $14.99 through the iOS app.
