by Katie Paul and Nivedita Balu
(Reuters) – Meta Platforms, parent company of Facebook, said on Tuesday it would cut 10,000 jobs this year, its second round of mass layoffs, as the tech sector braces for a deep economic downturn.
These job cuts, largely anticipated, are part of a restructuring that aims to abandon plans to hire 5,000 jobs and eliminate lower priority projects.
The Meta title climbed 6.1% at 3:41 p.m. GMT while the Nasdaq Composite took 2.5% at the same time.
Last November, Meta cut more than 11,000 jobs, or 13% of its workforce, as the company doubled the number of its employees in 2020.
In a message to staff, Chief Executive Mark Zuckerberg said most cuts would be announced in April and May, but in some cases they would continue until the end of the year.
“For most of our history, we have experienced rapid revenue growth year after year and had the resources to invest in many new products. But last year was a humbling one,” wrote Mark Zuckerberg.
“I think we should prepare for the possibility that this new economic reality will continue for many years to come.”
The move could ease investor fears as revenue growth in Meta’s core businesses slowed due to high inflation and a pullback in digital ads after the e-commerce boom during the COVID pandemic. -19.
Concerns about the economic slowdown linked to rising interest rates have also sparked a series of massive job cuts at American companies: from Wall Street banks such as Goldman Sachs and Morgan Stanley to big tech companies like Amazon. com and Microsoft.
The tech industry has laid off nearly 290,000 people since the start of 2022, with about 40% this year, according to layoff tracking site layoffs.fyi.
(Written by Nivedita Balu and Aditya Soni in Bangalore; French version Kate Entringer, edited by Blandine Hénault)
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