1 week Ago By Anusuya Lahiri
Meta Platforms Inc. META has initiated a new round of layoffs that will affect multiple departments, including WhatsApp, Instagram, and Reality Labs. These layoffs are smaller, department-specific cuts rather than a mass companywide reduction, the Verge reports .
The job cuts are reportedly part of internal team reorganizations. Several employees have already confirmed their layoffs through social media, including Jane Manchun Wong, a well-known developer who joined Meta’s Threads team in 2023. Also Read: Lenovo’s AI Push Grows with Meta, Nvidia Collaboration Outside China Meta spokesperson Dave Arnold told the Verge that the layoffs are tied to the company’s long-term strategy.
Arnold mentioned that these changes involve moving some teams to different locations and reallocating roles for certain employees. When roles are eliminated, Meta aims to find alternative opportunities for impacted staff, he added. A Meta spokesperson informed TechCrunch that Threads, recruiting, and legal operations were unaffected by the reorganization, and no layoffs occurred.
This recent wave of layoffs follows earlier cuts within Meta’s Reality Labs division. The company’s first significant layoff occurred in 2022, affecting 11,000 employees after Meta’s post-pandemic growth predictions did not materialize. In 2023, CEO Mark Zuckerberg declared it the “year of efficiency” and cut an additional 10,000 jobs.
Meta Platforms stock gained over 78% in the last 12 months. In September, the company announced its $299.99 Quest VR headset, Meta AI updates, Meta’s Ray-Ban Smart Glasses updates, and Meta’s new Orion glasses at the Meta Connect.
Analysts said Meta’s AI capabilities and developer collaboration could help the company develop its moat. They flagged Reality Labs investments becoming more synergistic with the core business as AI becomes a central component of its hardware products. Meta reported second-quarter revenue of $39.
07 billion, up by 22%, topping analyst consensus of $38.31 billion. It expects third-quarter revenue of $38.
5 billion to $41 billion versus analyst estimates of $38.31 billion. Investors can gain exposure to Meta stock through SPDR S&P 500 SPY and Invesco QQQ Trust, Series 1 QQQ .
Price Action: At the last check on Thursday, META stock traded higher by 0.56% to $580.01 premarket.
Also Read: Intel Partners With AMD To Counter Arm’s Rising Dominance in Computing Image via Shutterstock © 2024 Benzinga.com. Benzinga does not provide investment advice.
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