Facebook parent company %MetaPlatforms ($META) is reportedly planning massive layoffs in coming days as its losses related to the %Metaverse grow and compound.
An exact number of staff to be cut has not been announced, but the layoffs are expected to impact thousands of employees worldwide, according to multiple media reports.
The staff cuts would represent the first major headcount reduction in Meta’s history. Until now, the company has grown at a brisk clip.
At the end of September, Meta Platforms had nearly 90,000 employees worldwide.
In a recent Q3 earnings call, Meta chief executive officer (CEO) Mark Zuckerberg said: “We expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”
The layoffs come as Meta Platforms continues to invest heavily in developing products for use in the Metaverse, a virtual world that is largely theoretical at this point.
The company has allocated $70 billion to develop various Metaverse technologies but has not yet earned any money on the projects.
Meta’s stock is down 73% this year and trading at $90.79 U.S. per share. The tech company’s stock is among the worst performers in the S&P 500 index this year.