Benzinga - Meta Platforms Inc (NASDAQ: META) is laying off an additional 10,000 employees between March and May.
The Menlo Park, California-based company also plans to close 5,000 open positions and cancel lower-priority projects.
This comes after Meta laid off 13% of its workforce in November 2022, and while the social media giant takes cost-cutting measures as it pushes forward with its ambitious metaverse project.
Related: Meta Prepares To Let 10K Employees Go, Flatten Organizational Structure
Meta CEO Mark Zuckerberg dubbed 2023 the "year of efficiency" and is determined to make the metaverse a success. In a filing with the Securities and Exchange Commission, the company said that the layoffs and other cost reduction measures will save upwards of $5 billion in operating expenses.
“This will be tough and there's no way around that,” Zuckerberg said on Facebook. “It will mean saying goodbye to talented and passionate colleagues who have been part of our success. They've dedicated themselves to our mission and I'm personally grateful for all their efforts.”
Though, the SEC filing also stated that forward-looking statements, including those related to the metaverse, may differ materially from actual results — an indication that Meta is drudging along with its metaverse developments.
Last year, Reality Labs, the segment responsible for developing the metaverse, generated almost $2.2 billion in revenue. However, it reported an operating loss of $13.7 billion.
Despite substantial losses, Zuckerberg remains committed to the project, with a former Meta director saying that the metaverse is "the only thing Mark wants to talk about."
The layoffs and cost-cutting measures are not unexpected, given the macroeconomic environment, the fact that Meta’s revenue dropped last year, and the significant investment required for the metaverse.
The company said that it will work to support those impacted by the layoffs and help them find new roles within the company or elsewhere.
“We will support people in the same ways we have before and treat everyone with the gratitude they deserve,” Zuckerberg said.
Next: Zuckerberg's Life-Changing Advice To Young People
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.