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Platforms Inc. will begin laying off employees Wednesday morning, CEO Mark Zuckerberg told hundreds of executives Tuesday.
The upcoming layoffs are expected to amount to many thousands of employees and are likely to be the largest of the year so far in the tech sector, The Wall Street Journal previously reported.
Mr. Zuckerberg appeared dejected at Tuesday’s meeting, saying he was responsible for the company’s missteps and that his overoptimism about growth had led to overstaffing, according to people familiar with the meeting.
Meta’s chief human resources officer, Lori Goler, told the group that employees who lose their jobs will be provided with at least four months’ salary as severance pay, according to people familiar with the meeting.
Mr. Zuckerberg described broad cuts and specifically mentioned the recruiting and business teams as among those facing layoffs. A general internal announcement about the company’s layoff plans is expected around 6 Eastern time Wednesday, with the specific employees losing their jobs informed during the morning.
After the meeting, company directors in several parts of the organization began notifying their subordinates of layoffs and reorganizations.
Inside Meta, employees spent days searching for details about the upcoming layoffs and planned for the worst by forming external groups with current colleagues and discussing how to use benefits.
Meta reported more than 87,000 employees at the end of September. Company officials have already asked employees to cancel non-essential travel starting this week, the Journal previously reported.
The planned layoffs would be the first broad headcount reductions in the company’s 18-year history.
Meta’s stock has fallen more than 70% this year. The company has highlighted worsening macroeconomic trends, but investors have also been spooked by its spending and threats to the company’s core social media business. The growth of this company in many markets has stalled under fierce competition from TikTok and Apple Inc.’s
requiring users to opt-in to tracking their devices has limited social media platforms’ ability to target ads.
After hiring aggressively through the pandemic, the tech industry is facing its biggest cut in years. Twitter Inc. is laying off thousands of employees under new owner Elon Musk as he tries to restructure the company to match his vision while facing widespread concern from advertisers about its new direction.
said in August that it would cut about 20% of staff, or more than 1,000 employees, to prepare for what it said would be an expected period of low sales growth lasting into 2023.
— Salvador Rodriguez contributed to this article.
Write to Jeff Horwitz at Jeff.Horwitz@wsj.com and Sam Schechner at email@example.com
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