Meta looks to cut costs by 10% or more over next few months, says report

Meta is looking to chopped costs by 10% successful coming months, according to a report published Wednesday by The Wall Street Journal.

The outgo cuts are apt to see occupation reductions owed to interior concern section reorganizations arsenic opposed to much ceremonial layoffs. The outgo cutting is expected to commence implicit the adjacent fewer months.

For its second-quarter net study successful July, the Facebook genitor institution reported a 22% year-over-year summation successful costs and expenses totaling astir $20.4 billion. The institution has been investing heavy successful the metaverse successful the hopes that yet-to-be developed exertion volition pb to monolithic sales.

The institution besides reported its first-ever gross diminution from a twelvemonth ago, and predicted during that net telephone that its income would driblet again successful its 3rd quarter.

Chief Product Officer Chris Cox previously told employees successful a memo that the institution is "in superior times present and the headwinds are fierce." He added, "We request to execute flawlessly successful an situation of slower growth, wherever teams should not expect immense influxes of caller engineers and budgets."

Meta is presently facing important challenges successful its concern owed to respective factors. Apple's major privateness update for iOS 14 past twelvemonth made it harder for Meta to present advertisers elaborate demographic accusation astir its users, and advertisers are shifting their walk to other platforms. Additionally, the emergence of TikTok has affected the company's idiosyncratic growth.

Other societal media companies including Snap, Twitter and Pinterest country besides facing akin challenges.

Meta shares were up little than 1% successful midday trading to $146.33 connected Wednesday. However, shares are down much than 56% this year, acold worse than the S&P 500, which is down little than 20%, and the tech-heavy NASDAQ Composite, which is down astir 26%.