Meta Platforms Inc. plans to reduce its costs by at minimum 10% over the following months. The company will also rely heavily on employee attrition in this push according to the Wall Street Journal.
Although the company owns Facebook, Instagram, and WhatsApp, it has avoided any outright layoffs. Meta, however is pushing employees away from the company through reorganizing the departments and giving workers only a brief time to search for new jobs. JournalReports citing unidentified sources familiar with the matter.
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Meta seems to be more aggressive with its cost-cutting efforts, as the report shows. Meta already stated that it will slow down its hiring process and prioritize important projects and initiatives. The company stated that annual expenses will be approximately $3 billion less than originally projected. This reduces an estimate range of $95 billion.
The Menlo Park, California-based company didn’t immediately respond to a request for comment.
Initial cheers from investors were for Wednesday’s cost-cutting news. The stock had fallen as high as 1.5% in the morning, but it rose close to 1% on Wednesday, reaching session highs. However, it lost 0.1% in New York after a later trade.
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Meta has also been delaying some of its long-term hardware projects. This includes a dual-camera Apple Watch rival. As a cost-cutting measure, Meta has delayed the release of summer internship jobs.
Meta stated that it has 83,553 employees full-time as of June 30, a 32% increase over last year, despite the slowdown in hiring.
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