(Bloomberg) — Meta Platforms Inc . plans to begin layoffs that will affect thousands of workers starting this week, the Wall Street Journal reported, citing people familiar with the matter.
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The job cuts could come as early as Wednesday, the newspaper said. The company has already told employees to cancel non-essential travel starting this week, according to the report.
Meta shares rose as much as 3.5% in premarket trading in New York on Monday. Shares were down about 73% for the year through Friday, when they closed at $90.79 a share.
Chief Executive Mark Zuckerberg in September outlined plans to reorganize teams and cut headcount for the first time since growth slowed sharply at the parent company of Facebook and Instagram. Zuckerberg then said that Meta will likely be smaller in 2023 than it was this year.
The layoffs come as Meta struggles with mounting losses and invests heavily in growing its metaverse business.
“Meta could seek at least $3 billion to $4 billion in operating expense reductions through layoffs and fixed cost reductions to bring its view closer to the lower end of its $96 billion to $101 billion expense guidance,” the analyst wrote in Bloomberg Intelligence Mandeep Singh in a note on Monday.
The cuts will add to the already mounting job losses in Silicon Valley. Twitter Inc. shed nearly 3,700 positions last week after Elon Musk completed his $44 billion takeover of the social media platform. Other companies that have also cut workforces or announced plans to close include ride-hailing firm Lyft Inc. and hard drive maker Seagate Technology Holdings Plc.
A spokesperson for Meta declined to comment to the WSJ.
(Share updates in third paragraph, analyst in sixth)
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