Meta Quietly Lays Off Employees in Effort to Cut Costs By At Least 10% 

Facebook parent company Meta is laying off employees to reduce costs by at least 10% as it struggles to compete with rival social media platform TikTok. According to the Wall Street Journal, Meta has been covertly eliminating employees through departmental reorganizations. Managers participating in the process claim the company has provided affected employees with just a short amount of time to apply for other positions inside the business. The layoffs are a part of a larger strategy to cut consultancy and overhead expenses.

When asked about the layoffs, the social media giant pointed to comments made by CEO Mark Zuckerberg in July, in which he stressed the need to reallocate resources to the company’s top goals. Meta spokesperson Tracy Clayton said, “We’ve been public about the need for our teams to shift to meet these challenges.” How many employees would be let go was not confirmed by Meta. At the end of the second quarter of 2022, the company reported having 83,553 employees. However, Clayton noted that talent retention strategies include allowing former employees to submit applications for open roles inside the business.

In recent months, Meta has faced some financial strain as the company reported its first-ever quarterly revenue decrease. The business has also tried to modify its product to compete with TikTok, which has grown to be the most popular social network in the United States despite mounting concern about its ties to the Chinese government.

Other social media companies, including Snap, the parent company of Snapchat, have been forced to reduce staff to cut costs. In August, after a disastrous second quarter, Snap announced that it was firing 20% of its workforce.

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