Meta Platforms Layoffs 2023: What to Know About the Latest META Job Cuts

Already in February InvestorPlace Contributor William White asked an important question: Will there be more job cuts at Facebook? Two weeks later we have an unsurprising answer. parent company meta platforms (NASDAQ:META) just confirmed that more cuts are coming – and they won’t be small. While these meta-platform layoffs relate to the larger company and not Facebook specifically, it’s hard to imagine that the social media giant won’t be affected.

CEO Mark Zuckerberg is planning a “Year of Efficiency” and his actions have made it clear that this means significant headcount reductions. In November 2022, the company announced 11,000 job cuts. Now reports suggest this next round of layoffs will also be in the thousands.

META stock is reacting positively to this news today and is up more than 1% as of this writing. But does that mean investors shouldn’t worry? Let’s dive deeper into what this latest development could mean.

The Layoffs of the Meta-Platforms: A Closer Look

Thanks to the November 2022 job cuts, investors know what to expect from the upcoming layoffs at Meta Platforms. In short, nothing too alarming. Since the earlier round of job cuts, META stock has made impressive strides, up more than 60% since mid-November. This time it doesn’t seem to be any different. Shares aren’t up much today, but they remain in the green.

While the company has prioritized growth through “flattening” measures, that doesn’t appear to be the driving force behind the upcoming layoffs. Speak with Bloomberg, sources have confirmed thousands of job cuts are likely as early as this week. Per socket:

“The forthcoming round of cuts is driven by financial targets and is independent of ‘flattening’ […] Meta, which has seen a slowdown in ad revenue and has shifted focus to a virtual reality platform called Metaverse, has asked directors and vice presidents to create lists of employees who may be fired.”

Few details have been provided on the departments or companies that will be hardest hit by these layoffs. However, the company’s careers page indicates that it’s still hiring in areas like artificial intelligence (AI) and virtual and augmented reality. This suggests that Meta continues to focus on AI and Metaverse technology at the expense of less successful projects.

At the time of publication, Samuel O’Brient held no position (neither directly nor indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.