Meta Inc., the parent company of Instagram and Facebook, plans further to reduce its workforce after massive layoffs in late 2022. According to Bloomberg, Meta will have a new round of layoffs as soon as next week that will affect thousands of employees.
Back in November, the company laid off 11,000 workers in what has been the first massive layoff for the company since its inception. Meta executives reportedly wanted to create a “more efficient organization” and didn’t hesitate to get rid of entire teams if they deemed them non-essential.
These previous layoffs are considered to be a part of the “flattening” process, which usually includes reducing the number of management levels. The new round of layoffs, on the other hand, is believed to be driven by financial targets.
Meta has seen a drop in advertisement revenue lately, causing the company to find ways to cut costs and find additional sources of revenue. As part of these efforts, it will introduce a service called Meta Verified, which will allow users to get account verification badges and additional perks for a monthly fee.
After suffering a significant decline last year, Meta stock experienced a significant surge to start 2023. The company’s shares are currently at $184.90, almost 50% up year-to-date.