The tech industry in the USA could face further job cuts: According to a media report, Facebook parent Meta is planning to lay off thousands of employees. Most recently, the group had recorded a massive drop in profits and sales.
According to a media report, Facebook parent Meta is planning mass layoffs this week. The layoffs will affect thousands of employees, the Wall Street Journal (WSJ) reports, citing people familiar with the matter. An announcement is scheduled for Wednesday. Meta reported more than 87,000 employees at the end of September. The company has not yet commented on the report.
Other tech companies like Microsoft, Twitter and Snap have also cut jobs in the face of the economic downturn. But Meta's planned job cuts could be the largest at a major tech company this year. Only in September did the WSJ report that Meta wanted to reduce its spending by at least 10 percent in the coming months, including through downsizing.
The descent at Meta under CEO Mark Zuckerberg recently continued. Profits fell by about half in the third quarter to $4.4 billion. That was the worst result since 2019 and the fourth straight decline. In addition, the online network posted the second drop in sales in a row. Revenues shrank four percent to $27.71 billion in the summer quarter.
