Facebook parent company Meta and Alphabet's Google are reportedly cutting staff as the tech giants look to slash costs amid slowing growth. Citing peo

Facebook Parent Meta, Google to Cut Costs and Staff, Report Says

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2022-09-22 11:30:18

Facebook parent company Meta and Alphabet's Google are reportedly cutting staff as the tech giants look to slash costs amid slowing growth.

Citing people familiar with these decisions, The Wall Street Journal reported on Wednesday that Meta is looking to slash its costs by at least 10% within the next few months. Meta executives haven't used the term layoffs but are trying to cut staff by reorganizing departments and giving workers a certain amount of time to apply for other roles within the company, according to the report. Google also required some employees to apply to new roles.

Meta's and Google's efforts to cut costs show how the companies, which make money through selling ads, are bracing for an economic downturn. It's unclear how many employees have been impacted by these moves. Both companies have previously signaled that they were exploring ways to cut expenses.

Meta spokesman Dave Arnold pointed to remarks executives made during the company's earnings call in July. At that time, Meta CEO Mark Zuckerberg said the company plans "to steadily reduce headcount growth over the next year." Meta has also been reducing its expense guidance since the third quarter last year. The social media giant has been investing heavily in virtual reality and augmented reality as part of its ambitions to create the metaverse, a more immersive internet where people will be able to socialize, work and play in virtual spaces, but the company doesn't expect to make a profit from these efforts for years. As of June 30, Meta had 83,553 employees.

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