Facebook’s parent company Meta reportedly plans to begin massive layoffs this week that will affect thousands of employees.

US media reported over the weekend that the job cuts could be announced as early as Wednesday.

During Meta’s disappointing third-quarter results, CEO Mark Zuckerberg said headcount could fall.

“In 2023, we will focus our investments on a small number of high-priority growth areas,” he said.

Meta employs around 87,000 people worldwide across its various platforms, including Facebook, Instagram and WhatsApp.

The job cut plans follow unrest in the tech sector as the industry grapples with slowing global economic growth. Zuckerberg said he expected some teams to “stay flat or shrunken” over the next year.

“In total, we expect 2023 to end up being roughly the same size, or even a slightly smaller organization than we are today,” he said.

Advertising-supported platforms like Alphabet’s Facebook and Google are experiencing budget cuts from advertisers as they struggle with inflation and rising interest rates.

On Thursday, Silicon Valley companies Stripe and Lyft announced large-scale layoffs, while Amazon said it will stop hiring from its offices.

Twitter, since its acquisition by Elon Musk, released about half of its 7,500 employees last week. Not only is the global economy a concern for Meta, but there’s also competition from TikTok, privacy changes from Apple, concerns over massive spending on the Metaverse, and the ever-present threat of regulation.

Zuckerberg said he expects investments in Metaverse to take about a decade to show positive results.

In the meantime, he says he needs to reorganize teams to cut costs.

The social media company cut plans to hire engineers by at least 30% in June, with Mr Zuckerberg warning employees to prepare for an economic downturn.

Meta shareholder Altimeter Capital Management previously said in an open letter to Mr. Zuckerberg that the company needed to rationalize by cutting jobs and investment. He added that Meta had lost investor confidence as it increased spending and started focusing on the Metaverse.

The company’s market value has fallen to $600bn (£524bn) over the past year.

OPHOLD