Facebook-owner Meta Platforms plans to cut about 10,000 jobs over the next few months, the company announced Tuesday. Meta stock surged on the news.
Chief Executive Mark Zuckerberg said in an email to staff that the company would in the coming months conduct multiple rounds of job cuts totaling 10,000. Combined with the 11,000 employees laid off since November, Meta will have cut 21,000 jobs.
As a result, Meta passed Amazon as the tech company with the most job cuts during this period of layoffs. Amazon previously announced it will cut 18,000 jobs.
Meta also plans to cancel some projects as part of what Zuckerberg previously called a "year of efficiency." The company is striving to make its organization flatter by removing multiple layers of management, Zuckerberg said in the email.
Meta Stock Action
Meanwhile, Meta stock soared 7.3%, closing at to 194.02 on the stock market today.
The company also provided a preliminary update and outlook.
"As of today, we expect our full-year 2023 total expenses to be in the range of $86 billion to $92 billion," Meta said. The midpoint of $89 billion is below the midpoint estimate from analysts for $92 billion.
Like other social media companies, Meta stock has been hit hard by a sharp slowdown in advertising, where the company gets the vast majority of its revenue. This is happening as Meta is investing billions of dollars on the metaverse, a 3D virtual world.
