Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has announced a fresh wave of layoffs as part of an ongoing restructuring process aimed at aligning the company with its long-term strategic and location goals. The latest cuts impact various teams across the company, including Instagram, WhatsApp, and Reality Labs, the division responsible for Meta’s virtual and augmented reality projects.
Layoffs Across Multiple Divisions
According to a report by The Verge, the layoffs affect employees across several key divisions, reflecting Meta’s effort to refocus its resources. A Meta spokesperson confirmed the restructuring, explaining that some teams are being moved to different locations, while others will experience role changes. In cases where roles are eliminated, Meta is actively working to find new opportunities for impacted employees.
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“This includes moving some teams to different locations and moving some employees to different roles,” the spokesperson said. “In situations like these, when a role is eliminated, we work hard to find other opportunities for impacted employees.”
Among those affected by the layoffs is Jane Manchun Wong, a well-known app reverse engineer who gained fame for discovering unreleased features in social media apps. Wong joined Meta’s Threads team in 2023 and announced on social media that her role had been eliminated in the restructuring process.
Ongoing Efforts to Cut Costs
Meta has not disclosed the exact number of layoffs in this latest round. However, the company has been on a path of cost-cutting since November 2022, when it announced it would eliminate approximately 21,000 jobs. These moves were part of CEO Mark Zuckerberg’s broader effort to streamline Meta’s operations and create a leaner, more efficient organization.
In March 2023, Zuckerberg emphasized the importance of improving productivity and executing on top priorities more quickly. He introduced the concept of the “Year of Efficiency,” which has since led to significant workforce reductions as Meta seeks to remain competitive in an evolving tech landscape. The latest round of cuts, like the previous ones, reflects the company’s ongoing strategy to reduce costs and optimize resources.
Reality Labs and Cost Pressures
Reality Labs, Meta’s division focused on virtual and augmented reality, has been particularly affected by the restructuring. Despite Meta’s ambitious plans for the Metaverse, the division has faced substantial financial losses. Earlier this year, Meta had already laid off several employees in Reality Labs, signaling a broader shift in the company’s investment in this space.
The most recent financial reports show that while Meta posted strong earnings, the Reality Labs unit continues to struggle. The decision to lay off employees in this division comes as part of the company’s efforts to better allocate resources and align with its strategic priorities.
Workplace Issues in Los Angeles Office
In a separate development, Meta has terminated approximately two dozen employees in its Los Angeles office for misusing the company’s $25 meal credit program. According to sources familiar with the matter, the employees had allegedly exploited the system by purchasing non-food items such as acne treatment pads, wine glasses, and laundry detergent. Some staff members reportedly pooled their credits or had meals delivered to their homes, which was outside the program’s intended scope for on-site meals.
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Despite the internal challenges and workforce reductions, Meta’s strong financial performance in 2023 has significantly boosted the wealth of CEO Mark Zuckerberg. According to Bloomberg’s Billionaire Index, Zuckerberg’s net worth surged by $71.8 billion in 2023, propelling him into the ranks of the world’s top three wealthiest individuals, with a fortune exceeding $200 billion. This growth is largely attributed to Meta’s stock price, which has risen by nearly 60% since January 2023, reaching record highs of over $560 per share.
