Meta Platforms, the parent company of Facebook, is reportedly planning a new wave of layoffs that may mirror the previous year’s cuts, which totaled 13 percent of its workforce. This information comes from a Wall Street Journal report published on Friday, citing unnamed sources familiar with the situation.
In November, Meta let go of 11,000 employees and could become the first major technology company to initiate a second round of large-scale layoffs.
The announcement of the first batch of these new layoffs is expected next week and is likely to impact non-engineering positions the most, according to the report.
Alongside the layoffs, the company is anticipated to discontinue several projects and teams, as indicated in the report.
There was no immediate response from Meta to a request for comment from Reuters.
In a separate development, Meta Platforms announced on Friday that it is evaluating strategic options for Kustomer, the customer service company it acquired late last year.
In a statement to Reuters, Meta said, “We are currently exploring strategic alternatives for Kustomer and will continue to support Kustomer’s product and customer base throughout this process,” although no further details were provided regarding these alternatives.
The Wall Street Journal, which broke the news, noted that Meta is considering divesting Kustomer as part of its efforts to refocus on its core business operations, according to sources familiar with the planned transactions.
Kustomer provides customer relationship management (CRM) software that enables businesses to communicate with consumers across various platforms such as phone, email, and messaging apps, including WhatsApp and Instagram. The company experienced increased usage during the COVID-19 pandemic.
Meta has opted to prioritize its rapidly growing messaging business, particularly the monetization potential of WhatsApp, in line with its “efficiency efforts,” the company stated.
© Thomson Reuters 2023
