Meta Quietly Reduces Staff In Cost-Cutting Push

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Meta Platforms Inc. is planning to cut expenses by at least 10% in the coming months, in part through staff reductions, as the social-media giant confronts stalling growth and increased competition, according to people familiar with the company’s plans.

The Menlo Park, Calif., company has begun quietly nudging out a significant number of staffers by reorganizing departments and giving affected employees a limited window to apply for other roles within the company, according to current and former managers familiar with the matter, in a move that achieves staffing cuts while forestalling the mass issuance of pink slips.

According to a report, Meta has gotten more aggressive in its efforts to cut costs. Meta has already said it would slow down hiring and reprioritize key projects and initiatives.

During its first-quarter earnings call, the company said annual expenses would be roughly $3 billion lower than initially projected, trimming an estimated range that had been as high as $95 billion.

The Menlo Park, California-based company didn’t immediately respond to a request for comment.

Investors initially cheered the cost-cutting news Wednesday. The stock, which had been down as much as 1.5% earlier in the day, rose nearly 1% to session highs. But it later pared the gains and was down 0.1% as of 1:20 p.m in New York.

Meta also has been cutting down on some long-term hardware projects, including a planned dual-camera Apple Watch competitor. The company has even delayed handing out jobs to its summer interns as a way to reduce costs.

Despite the hiring slowdown, Meta reported it had 83,553 full-time employees as of June 30, growth of 32% over the previous year.