Facebook’s parent company Meta will reportedly be slashing budgets across most teams, according to a Bloomberg report.
Meta CEO Mark Zuckerberg announced plans to freeze hiring and restructure some groups within the company, in an internal call on Thursday.
The company that also owns Instagram and Whatsapp plans to shrink budgets widely, including in areas where it was recently investing in. Besides VR and creating its own metaverse, Meta is also investing in video products like Reels, that can compete with TikTok.
According to Bloomberg, Meta leadership blamed current economic conditions for the cuts.
“I had hoped the economy would have more clearly stabilized by now, but from what we’re seeing it doesn’t yet seem like it has, so we want to plan somewhat conservatively,” Zuckerberg told employees.
Last week, the Wall Street Journal reported certain Meta employees have been told to find new roles in the company or face downsizing.
Also, back in July Zuckerberg signaled that the company was in for leaner times. “Realistically, there are probably a bunch of people at the company who shouldn’t be here,” Zuckerberg said then.
The social media company’s once explosive growth, that lasted for a decade, is facing a hard time as advertising slumps.