Market Analysis

Meta is reportedly laying off employees across various divisions, including Instagram, WhatsApp, and Reality Labs, as stated by the Verge, citing insider sources.

A spokesperson for Meta informed Reuters that some teams are undergoing changes to better align with their long-term strategic objectives and location plans. “This includes relocating certain teams and shifting some employees to different roles. In cases where a position is eliminated, we strive to find alternative opportunities for those affected,” the spokesperson noted.

While the Verge did not specify the number of job cuts, it mentioned that the layoffs were relatively small, and Meta has not commented on the exact figures.

Additionally, the Financial Times reported that Meta dismissed about two dozen employees in Los Angeles for allegedly misusing their daily $25 meal credits to purchase household items such as acne pads, wine glasses, and laundry detergent. These terminations were separate from the ongoing team restructurings and occurred last week, according to the FT.

Meta declined to comment on the Financial Times report.

Since November 2022, Meta has eliminated approximately 21,000 jobs as part of its efforts to reduce costs, with CEO Mark Zuckerberg referring to 2023 as the “Year of Efficiency.”

Despite these layoffs, Meta's stock has surged more than 60% this year. In its recent second-quarter results, the company exceeded market expectations for revenue and provided an optimistic sales forecast for the third quarter, indicating that strong digital advertising spending on its platforms is sufficient to support its investments in artificial intelligence.

Paraphrasing text from "Reuters" all rights reserved by the original author.