Meta is taking actions to cut expenses by at least 10%, including through staff reductions, amid efforts to compete with TikTok.
The social platform has been quietly removing a number of positions through department reorganizations, according to the Wall Street Journal. It has also given the staff affected a short period to apply for other jobs within the company, according to managers involved in the process. The layoffs are part of a bigger plan to reduce overhead and consulting costs that will likely involve reduced staff.
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When asked for comment, the company cited remarks from Meta CEO Mark Zuckerberg in July, noting the need to reallocate resources toward company priorities. “We’ve been public about the need for our teams to shift to meet these challenges,” Meta spokesman Tracy Clayton said. Meta did not confirm how many workers would be laid off. The company reported having 83,553 employees as of the end of the second quarter of 2022.
Giving former employees a chance to apply for other positions within the company is a method for retaining talent, Clayton noted.
Meta has faced some economic pressure in the last two months, with the corporation noting its first revenue decline in history last quarter. The company has also attempted to adapt its product to compete with TikTok, which has become the most prominent social platform in the United States, despite growing concerns regarding its affiliation with the Chinese government through its parent company, the Beijing-headquartered ByteDance.
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Meta is not the only tech company to lay off employees to save funding. Snapchat’s parent company Snap announced in August that it was laying off 20% of its staff after a terrible second quarter.
