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Meta aims to cut costs by at least 10% within next few months - WSJ

Published 09/21/2022, 02:52 PM
Updated 09/21/2022, 02:56 PM
© Reuters. A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
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(Reuters) - Meta Inc is looking to trim its costs by at least 10% within the next few months, the Wall Street Journal 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 (NASDAQ:META) 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.

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, according to the report.

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

© Reuters. A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier

The company's business has taken a hit in recent months as recession fears and competitive pressures hit digital ads 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.

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