Meta is reportedly planning to reduce its workforce by 10%, which translates to approximately 8,000 employees. Additionally, the tech giant will freeze hiring for 6,000 currently open positions, according to a Bloomberg report.
An internal memo circulated to employees on Thursday, which Bloomberg reviewed, indicated that these workforce reductions are scheduled to commence on May 20.
Janelle Gale, Meta's Chief People Officer, addressed the rationale behind these significant changes in the memo, stating, "We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making. This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here."
The strategic shift comes after Meta's substantial investment of tens of billions into its metaverse ambitions, which have largely not yielded the expected returns. Concurrently, the company has been compelled to make considerable investments in its artificial intelligence initiatives to remain competitive in the rapidly evolving AI landscape. Earlier this month, Meta unveiled a significantly revamped AI product named Muse Spark, highlighting its commitment to the AI domain.