March 21, 2023

Meta Platforms Inc. is cutting costs by at least 10% next month and will rely more on layoffs as part of the push, According to The The Wall Street Journal.

The company that owns Facebook, Instagram and WhatsApp avoided outright layoffs. But restructuring meta-departments is pushing more employees out of the company and giving workers less time to find new positions, Journal The report cited unidentified people familiar with the situation.

Read more: Facebook owner Meta is failing to prevent a repeat of January 6 in Brazil, reports warn

The report suggests that Meta has become more aggressive in its efforts to cut costs. Meta has already said it will slow down hiring and re-prioritize key projects and initiatives. During its first-quarter earnings call, the company said annual expenses would be about $3 billion lower than initially estimated, trimming an estimated range that had been as high as $95 billion.

The Menlo Park, Calif.-based company did not immediately respond to a request for comment.

Investors initially cheered news of the cost cuts on Wednesday. The stock, which was down as much as 1.5% earlier in the day, rose nearly 1% to a session high. But it pared gains later and was down 0.1% by 1:20 pm in New York.

Read more: Some CEOs are cutting staff even as the labor market booms

Meta has also scaled back some long-term hardware projects, including a planned dual-camera Apple Watch competitor. The company even delayed hiring summer interns as a way to cut costs.

Despite the hiring slowdown, Meta said it had 83,553 full-time employees as of June 30, a 32% increase over the previous year.

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