The Washington Post reported on Wednesday that Facebook parent company Meta Platforms Inc (NASDAQ:META) is preparing to lay off new employees as part of a reorganisation and downsizing effort that could effect thousands of employees.
The company did not immediately respond to a Reuters request for comment.
The social media giant announced last year that it will lay off 13% of its personnel, or more than 11,000 workers, as it battled rising costs and a weak advertising market.
According to a person familiar with the situation, Meta intends to reduce the distance between top manager Mark Zuckerberg and the company’s interns by moving some leaders into lower-level positions without direct reporting.
The layoffs that occurred last year were the first in Meta’s 18-year history. Other tech companies have cut thousands of jobs, including Google parent Alphabet (NASDAQ:GOOGL), Microsoft Corp (NASDAQ:MSFT) and Snap Inc (NYSE:SNAP).
During the outbreak, Meta aggressively recruited staff to handle a spike in social media usage from people stuck at home. But, business was negatively impacted in 2022 due to advertising and customers cutting back on purchases due to high costs and quickly rising interest rates.
Meta, once worth over $1 trillion, is now valued at $446 billion. Shares lost 1.2% on Wednesday.
To control costs, the firm announced last year that it will reduce office space, cut discretionary spending, and extend a hiring freeze through 2023.
According to a survey from recruitment company Challenger, Gray & Christmas Inc., over 100,000 layoffs were reported at US companies in January, with technology companies leading the way.