Mark Zuckerberg, CEO of Meta Platforms Inc., left, arrives in federal court in San Jose, California, U.S., Tuesday, Dec. 20, 2022.
David Paul Morris | Bloomberg | Getty Images
Meta is planning another round of layoffs that could affect thousands of workers, according to a Bloomberg News report published Monday evening.
The job cuts could begin this week and represent a further round of layoffs, adding to the 13 percent of Meta’s workforce that were laid off as part of a major cost-cutting plan announced in November.
A spokesperson for Meta declined to comment to CNBC on the report.
Meta CEO Mark Zuckerberg previously indicated that the social networking giant would focus this year on efforts designed to reduce the company’s costs, declaring 2023 the “Year of Efficiency.” He told analysts in February that Meta was focusing on “cutting projects that are not performing or may no longer be critical” and that he planned to “remove layers of middle management to make decisions faster.” .
The cost-cutting efforts come at a difficult time for the consumer technology company, which said its costs and expenses jumped 22 percent year over year to $25.8 billion in the fourth quarter, while overall sales fell 4 percent to 32 billion dollars.
Meta’s core online advertising business continues to face headwinds due to factors including a difficult digital advertising market, the lingering effects of Apple’s 2021 iOS privacy update and increased competition from ByteDance-owned TikTok.
Meanwhile, the company continues to invest heavily in the development of the metaverse, which Meta believes could represent the next frontier for mass computing. The company’s Reality Labs division, which is charged with creating the virtual reality and augmented reality technologies needed for the metaverse, brought in $727 million in revenue in the fourth quarter, but also posted a $4.28 billion operating loss.
Zuckerberg said he would “take responsibility” for the company’s previously announced cost-cutting plans, saying he viewed the cuts “as a last resort.”
“We’re restructuring teams to increase our efficiency,” Zuckerberg said last fall when Meta announced layoffs. “But these measures alone will not bring our costs in line with our revenue growth, so I have also made the difficult decision to let people go.”
Watch: Box CEO on earnings, tech spending headwinds, AI opportunities and challenges.