Two of the world’s largest tech companies have begun quietly cutting jobs to cut costs.
Facebook owner Meta Platforms has begun reorganizing departments and giving affected employees a limited time to apply for other internal positions, the Wall Street Journal (WSJ) reported Wednesday (September 21), citing no mentioned sources.
Such a move manages to cut staff without resorting to mass layoffs, but those cuts could be the basis for a broader set of cuts as Meta aims to cut costs by 10%, according to the report. Some savings come from reducing overhead and consulting budgets, but most comes from downsizing.
When asked for comment, a meta spokesman referred PYMNTS to comments by CEO Mark Zuckerberg on a recent conference call.
“Our plan is to steadily reduce staff growth over the next year,” said the CEO. “Many teams will shrink so we can shift energy elsewhere, and I wanted to give our leaders the ability to make decisions within their teams about where to double down, where to heal attrition, and where to restructure teams while minimizing stress long-term initiatives.”
Zuckerberg added that he expects the company to “do more with fewer resources” and that past challenges have been “transformative for our company.”
See also: Meta promises “leaner, meaner” operations as business climate cools
Meanwhile, Google told employees at its startup incubator Area 120 in July that they had 90 days to find new jobs within the company. Google was not immediately available for comment on Wednesday.
Continue reading: Google launches a two-week hiring freeze
Google announced in July that it was suspending hiring for two weeks and slowing the pace of hiring for the rest of the year in anticipation of a recession.
“We will use this time to review our staffing needs and align with a new set of prioritized staffing requests for the next three months,” senior vice president Prabhakar Raghavan wrote in a memo to employees.
We’re always looking for opportunities to partner with innovators and disruptors.