Meta may be planning to fire thousands of employees in another layoff round

Facebook-parent Meta Platforms Inc is planning a fresh round of job cuts in a reorganization and downsizing effort that could affect thousands of workers, the Washington Post reported on Wednesday. Also Read: Instagram Launches Limited-Edition Diwali Filters: Here’s How To Use Them

The company did not immediately respond to a Reuters request for comment. Also Read: Meta AI Adds UPI Lite, Hindi Support, and Deepika Padukone’s Voice to Ray-Ban Glasses in India

Last year, the social media giant said it will let go of 13 percent of its workforce, or more than 11,000 employees, as it grappled with soaring costs and a weak advertising market. Also Read: Meta Wants Employees To Build The Metaverse 5X Faster Using AI

Meta plans to push some leaders into lower-level roles without direct reports, flattening the layers of management between top boss Mark Zuckerberg and the company’s interns, the Washington Post reported, citing a person familiar with the matter.

Last year’s layoffs were the first in Meta’s 18-year history. Other tech companies have cut thousands of jobs, including Google parent Alphabet, Microsoft Corp, and Snap Inc.

Meta aggressively hired during the pandemic to meet a surge in social media usage by stuck-at-home consumers. But business suffered in 2022 as advertisers and consumers pull the plug on spending in the face of soaring costs and rapidly rising interest rates.

Meta, once worth more than $1 trillion, is now valued at $446 billion. Shares lost 1.2 percent on Wednesday.

Last year the company said it would also reduce office space, lower discretionary spending and extend a hiring freeze into 2023 to rein in expenses.

More than 100,000 layoffs were announced at US companies in January, led by technology companies, according to a report from employment firm Challenger, Gray & Christmas Inc.

— Reuters