In recent months, Twitter, Snap, Microsoft, and other tech companies firms have reduced their workforces.
The first significant layoffs in the history of the social media platform will take place this week at Facebook parent firm Meta Platforms, according to a report published by the Wall Street Journal on Sunday.
The layoffs are part of a larger trend in the digital sector, with businesses like Twitter, Snap, Microsoft, and others recently reducing their workforces.
On October 26, Zuckerberg informed investors that "in 2023, we're going to focus our spending on a limited handful of high-priority growth areas." The majority of clubs will either remain stable or contract during the upcoming year, while several teams will experience considerable growth.
Meta anticipates "ending 2023 as either approximately the same size or even a somewhat smaller business as we are now," according to Zuckerberg.
This year so far, Meta stock is down around 73%.
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Last month, Altimeter Capital, a Meta investor, wrote a letter to Zuckerberg and the board of directors of the internet giant requesting that they reduce the company's employment by 20%.
Brad Gerstner, CEO of Altimeter, stated in the letter, "Like many other firms in a zero rate world, Meta has gone into the region of excess - too many people, too many ideas, and too little urgency." When growth is quick and simple, this lack of focus and fitness is hidden, but it becomes fatal when development slows and technology advances.
Facebook was renamed Meta by Zuckerberg last year as the firm turned its emphasis to the metaverse, but the change has had trouble catching on.
At the end of September, Meta had 87,300 employees, a 28% increase over the same period last year.