Facebook's parent company Meta is aiming to cut expenses by at least 10 percent over the next few months by reducing staff and reorganizing departments, days after it was announced CEO Mark Zuckerberg has lost $71 billion dollars this year.
The California company has been able to push out a number of staffers by reshuffling its departments and giving employees who are affected a 30 day window to apply for other roles in the company.
The process allows the company to reduce the cost of employees while avoiding the issuance of pink slips as it weighs options going forward.
Meta executives recently discussed the need for 'ruthless prioritization' within the company and said hiring freezes are necessary, though at the time they avoided using the word 'layoffs.'
In February, Meta revealed no growth in monthly Facebook users, triggering a historic collapse in its stock price that has yet to recover.
Zuckerberg, the New York-born billionaire, has seen his fortune steadily slip away since he launched Meta and the stock is down 58% YTD.
Meta spokesman Tracy Clayton referred to Zuckerberg's statement in July that said the company would need to reallocate resources to confront stalling growth.
'We've been public about the need for our teams to shift to meet these challenges,' Clayton said.
Clayton refused to give a number on how many employees are affected by the reshuffling, but said the process allows the company to retain useful employees.
Meta reported having 83,553 employees at the end of the second quarter, up 32% from a year ago.
Zuckerberg, the New York-born billionaire, has seen his fortune steadily slip away since he launched Meta, Facebook's parent company, in October 2021.
Almost all of Zuckerberg's wealth is tied up in Meta stock, and he holds more than 350 million shares, according to the company's latest proxy statement.
In February, Meta revealed no growth in monthly Facebook users, triggering a historic collapse in its stock price and slashing Zuckerberg's fortune by US$31 billion - among the biggest one-day declines in wealth ever.
Meta is performing worse than its peers, Bloomberg reported - down 57 percent this year, versus 14 percent for Apple, 26 percent for Amazon and 29 percent for Google's parent company Alphabet.