Meta plans to cut more than 87,000 employees by the second week of November, as Wall Street Journal reported. This is one of the biggest layoffs this year at a tech giant like Meta. The layoff comes just 2 months after Meta froze hiring and restructured some teams in an effort to cut costs and shift priorities in September 2022. The company also noted that it will reduce costs by 10%, partly due to job cuts.
Meta has struggled with its metaverse plans after making a bold attempt in October 2021 by changing its company name. However, Meta’s metaverse division, Reality Labs, since then, hasn’t been doing well, losing $3 billion and $2.8 billion in Q1 and Q2 2022, respectively. Most recently in the third quarter, Reality Labs continued to report a loss of $3.7 billion and failed to meet the user target for its flagship metaverse app Horizon Worlds.
Meta is not the only company planning to lay off employees. Galaxy Digital, DCG and BitMEX, Dapper Labs, and Mythical Games are all Web3 companies that laid off staff in the first week of November. Many other prominent players in the industry such as Coinbase, Crypto.com, BlockFi Blockchain. com, WazirX, etc. have all made the similar move as the crypto winter is still a hot potato of the crypto market.
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