Its profits dropped 52 percent year-over-year to $4.4 billion in the third quarter.
Several thousand employees will be laid off this week by Meta, the parent company of Facebook, as The Wall Street Journal reports, citing people familiar with the matter.
Thousands of Meta employees could lose their jobs, and an announcement is expected as soon as Wednesday.
On September 30, Meta had approximately 87,000 employees worldwide across its platforms, which include Facebook, Instagram, and Whatsapp.
Following four years at the helm, Meta Platforms India head Ajit Mohan resigned with immediate effect to pursue opportunities outside the company. Snap Inc. reportedly hired him.
According to Zuckerberg, Meta’s staff might decrease slightly by the end of 2023 in light of the firm’s disappointing third quarter results.
In response to economic headwinds, other tech firms have frozen hiring or cut their workforces.
Amazon has froze hiring in its corporate offices after Silicon Valley firms Stripe and Lyft announced large-scale layoffs last Thursday.
After being acquired by Elon Musk last week, Twitter abruptly laid off half of its 7,500 employees.
With inflation and rising interest rates, ad-supported platforms such as Facebook and Alphabet’s Google are experiencing budget cuts from advertisers.
In the third quarter, Meta’s profits fell 52 percent to $4.4 billion, a 52 percent decline.
As a result of the disappointing results, Meta’s stock price dropped 25 percent in one day.
Over the past year, the company has lost $600 billion in market value.
Investors have been concerned about Zuckerberg’s decision to devote substantial funds toward developing the metaverse, in addition to its ad-supported business woes.