(Bloomberg) — Facebook parent Meta Platforms Inc. plans to begin sweeping job cuts on Wednesday, according to people familiar with the matter, part of a cost-cutting plan at the social media giant following disappointing earnings and declining revenue.
Most Read by Bloomberg
Affected workers will be notified starting Wednesday morning, and CEO Mark Zuckerberg spoke with executives Tuesday to prepare them for the cuts, said the people, who asked not to be identified discussing personal information. In the executive call, Zuckerberg said he was responsible for the company’s “mistakes,” according to the Wall Street Journal.
A representative for Meta did not immediately respond to a request for comment.
Zuckerberg warned employees in late September that Meta intended to cut costs and restructure teams. The Menlo Park, California-based company, which also owns Instagram and WhatsApp, implemented a hiring freeze and the CEO said Meta expected the number of employees to be smaller in 2023 than this year.
The cuts are expected to affect about 10 percent of the company, which employed more than 87,000 as of Sept. 30, according to Insider. The reductions, part of the first major budget cut since Facebook was founded in 2004, reflect a sharp slowdown in digital ad revenue, an economy teetering on the brink of recession and Zuckerberg’s big investment in a profitable virtual reality push called metaverse.
“It’s obviously a different way of operating than we’re used to operating,” Zuckerberg said in a Q&A session with employees in September. “For the first 18 years of the company, we basically grew rapidly basically every year, and then more recently our revenue was flat to slightly down for the first time. So we have to adapt.”
Read more: Twitter, Meta Push Tech Job-Cut Pace Near Early Pandemic Levels
Meta’s job cuts followed cuts at Twitter Inc. last week, where the company cut about 50% of its workforce following its sale to Elon Musk. These layoffs were chaotic, with many employees finding they had lost their jobs when suddenly cut off from Slack or email. Musk said the moves were necessary to limit losses at the social network. He later asked some of those fired to return.
Snap Inc., parent of rival Snapchat, is also downsizing, saying in August it would eliminate 20 percent of its workforce.
Earlier: Meta to Cut Headcount for First Time, Slash Budgets Across Teams
Most Read by Bloomberg Businessweek
©2022 Bloomberg LP