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Facebook-owner Meta aims to cut costs by at least 10% within next few months - report

Published: 02:45 22 Sep 2022 EDT

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The reported figure represents a big jump from the earlier forecast of about 2% to 4% cost cuts that Meta announced in July

Facebook owner Meta Platforms Inc (NASDAQ:FB) is looking to trim its costs by at least 10% within the next few months, the Wall Street Journal (WSJ) reported on Wednesday, citing people familiar with the company's plans.

The reported figure represents a big jump from the earlier forecast of about 2% to 4% cost cuts that Meta announced in July.

To meet its latest target, the Facebook parent has already started nudging out a large number of staffers by reorganizing departments and providing affected employees a limited window to apply for other roles within Meta, the report said.

READ: Mark Zuckerberg has a Meta-sized hole in his bank account after losing $70B this year

The idea behind the move is to achieve staffing cuts while forestalling the mass issuance of pink slips, and the reductions are expected to be a prelude to deeper cuts, the WSJ report said.

Meta on Wednesday reiterated its plans to steadily reduce headcount growth over the next year in an emailed response to the WSJ, it reported.

The company's business has taken a hit in recent months as recession fears and competitive pressures hit digital advertising sales. Reuters had reported in June that Meta had cut plans to hire engineers by at least 30% this year as it prepares for a deep economic downturn.

"Our plan is to steadily reduce headcount growth over the next year. Many teams are going to shrink so we can shift energy to other areas inside the company," Meta CEO Mark Zuckerberg said during the company's quarterly earnings call in July.

Contact the author at jon.hopkins@proactiveinvestors.com

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