Meta preparing for fresh round of job cuts – Washington Post

(Reuters) -Facebook-parent Meta Platforms Inc (NASDAQ:) is planning a fresh round of job cuts in a reorganization and downsizing effort that could affect thousands of workers, the Washington Post reported on Wednesday.

The company did not immediately respond to a Reuters request for comment.

Last year, the social media giant said it will let go of 13% of its workforce, or more than 11,000 employees, as it grappled with soaring costs and a weak advertising market.

Meta plans to push some leaders into lower-level roles without direct reports, flattening the layers of management between top boss Mark Zuckerberg and the company’s interns, the Washington Post reported, citing a person familiar with the matter.

Last year’s layoffs were the first in Meta’s 18-year history. Other tech companies have cut thousands of jobs, including Google parent Alphabet (NASDAQ:), Microsoft Corp (NASDAQ:) and Snap Inc (NYSE:).

Meta aggressively hired during the pandemic to meet a surge in social media usage by stuck-at-home consumers. But business suffered in 2022 as advertisers and consumers pull the plug on spending in the face of soaring costs and rapidly rising interest rates.

Meta, once worth more than $1 trillion, is now valued at $446 billion. Shares lost 1.2% on Wednesday.

Last year the company said it would also reduce office space, lower discretionary spending and extend a hiring freeze into 2023 to rein in expenses.

More than 100,000 layoffs were announced at U.S. companies in January, led by technology companies, according to a report from employment firm Challenger, Gray & Christmas Inc.