© Reuters. FILE PHOTO: The logo of the Meta Platforms business group in Brussels, Belgium, December 6, 2022. REUTERS/Yves Herman
(Reuters) – Facebook parent Meta Platforms Inc (NASDAQ:) is planning a new round of job cuts in a reorganization and downsizing effort that could affect thousands of workers, the Washington Post reported on Wednesday.
The company did not immediately respond to a Reuters request for comment.
Last year, the social media giant said it would lay off 13% of its workforce, or more than 11,000 employees, as it grappled with skyrocketing costs and a weak ad market.
Meta plans to push some leaders into lower-level roles without direct reports, leveling management levels between top boss Mark Zuckerberg and company interns, the Washington Post reported, citing a person familiar with the matter.
The layoffs last year were the first in Meta’s 18-year history. Other tech companies have cut thousands of jobs, including Google parent Alphabet (NASDAQ:), microsoft corporation (NASDAQ:) and Complement inc. (NYSE:).
Meta was aggressively hired during the pandemic to address an increase in social media use by consumers stuck at home. But businesses suffered in 2022 as advertisers and consumers halted spending in the face of skyrocketing costs and rapidly rising interest rates.
Meta, once worth more than $1 trillion, is now valued at $446 billion. Shares lost 1.2% on Wednesday.
Last year, the company said it would also reduce office space, cut discretionary spending and extend a hiring freeze through 2023 to rein in spending.
More than 100,000 layoffs were announced at US companies in January, led by technology companies, according to a report by employment firm Challenger, Gray & Christmas Inc.