November 28, 2022

Meta Platforms Inc. to reduce costs by at least 10% in the coming months and will rely more on staff attrition as part of the payment, to me The The Wall Street Journal.

The company, which owns Facebook, Instagram and WhatsApp, has avoided layoffs altogether. But Meta is pushing more employees out of the company by reorganizing departments and giving workers only a short time to find new jobs, magazine reported, citing anonymous people familiar with the situation.

Read more: A report warns of Meta, the owner of Facebook, in preventing the recurrence of January 6 in Brazil

The report notes that Meta is getting bolder in its efforts to cut costs. Meta has already said it will slow hiring and reprioritize key projects and initiatives. During the first-quarter earnings call, the company said annual expenses would be about $3 billion less than initially expected, trimming the estimated range that was up to $95 billion.

Menlo Park, California, did not immediately respond to a request for comment.

Investors initially welcomed the news of the cost cuts on Wednesday. The stock, which had fallen 1.5% earlier in the day, surged nearly 1% to its session highs. But it later pared gains and is down 0.1% as of 1:20 pm in New York.

Read more: Some CEOs are reducing the number of employees even as the labor market is booming

Meta has also cut back on some long-term hardware projects, including a rival Apple Watch with a dual camera. The company has even delayed handing over jobs to summer interns as a way to cut costs.

Despite the hiring slowdown, Meta reported that it had 83,553 full-time employees as of June 30, a 32% increase from the previous year.

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