The company aggressively hired during the pandemic to cater to the surge in social media usage by consumers who were stuck at home. However, its business reportedly suffered in 2022 as advertisers and consumers reduced spending due to soaring costs and rapidly rising interest rates.
Facebook's parent company, Meta Platforms Inc, is reportedly planning to downsize its workforce in a reorganisation effort. According to a report by the Washington Post on Wednesday, the fresh round of job cuts could potentially impact thousands of workers.
Last year, the company announced that it would let go of over 11,000 employees, equivalent to 13 percent of its workforce, due to increasing costs and a weak advertising market.
As part of the latest restructuring, Meta plans to flatten the management hierarchy between CEO Mark Zuckerberg and the company's interns by reassigning some leaders to lower-level roles without direct reports, as per a Washington Post's source.
The company aggressively hired during the pandemic to cater to the surge in social media usage by consumers who were stuck at home. However, its business reportedly suffered in 2022 as advertisers and consumers reduced spending due to soaring costs and rapidly rising interest rates.
Meta, once valued at over $1 trillion, is now worth $446 billion, and its shares fell 1.2 percent on Wednesday. Last year, the company had also announced plans to reduce office space, lower discretionary spending, and extend a hiring freeze into 2023 to cut costs.
According to a report from employment firm Challenger, Gray & Christmas Inc., more than 100,000 layoffs were announced at US companies in January, with technology companies leading the way.
While last year's layoffs were the first in Meta's 18-year history, other tech companies like Google parent Alphabet, Microsoft Corp, and Snap Inc have also cut thousands of jobs in the past.
Also read: Are mid-management roles the next target in tech layoffs? Here's what experts have to say
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