Meta Platforms Inc., the owner of Facebook and Instagram, is planning a fresh round of layoffs and will cut thousands of employees as soon as this week, according to people familiar with the matter.

The world’s largest social networking company is eliminating more jobs, on top of a 13% reduction in November, in a bid to become a more efficient organisation. In its earlier round of cuts, Meta slashed 11,000 workers in what was its first-ever major layoff. The company has also been working to flatten its organisation, giving buyout packages to managers, and cutting whole teams it deems nonessential, Bloomberg News reported in February, a move that is still being finalised and could affect thousands of staffers.

Also read: Meta preparing for fresh round of job cuts: report

The imminent round of cuts is being driven by financial targets and is separate from the “flattening,” said the people, who asked not to be identified. Meta, which has seen a slowdown in advertising revenue and has shifted focus to a virtual-reality platform called the metaverse, has been asking directors and vice presidents to make lists of employees that can be let go, the people said. A Meta spokesperson declined to comment on the plans on Monday.

This phase of layoffs could be finalised in the next week, according to the people. Those working on the plan are hoping to have it ready before CEO Mark Zuckerberg goes on parental leave for his third child, which may be imminent, one person said.

Also read: Global layoffs reach three-fourth of 2022 in 51 days of 2023, India relatively insulated

The November cuts were a surprise, but another round of firings has been widely anticipated by the Meta workforce. Zuckerberg has dubbed 2023 Meta’s “year of efficiency,” and the company has been communicating that theme to employees during performance reviews, which were completed last week, the people said.

Workers at the Menlo Park, California-based company described heightened anxiety and low morale among colleagues lately. Some employees expressed worry about whether they’d receive their bonuses, which are set to be distributed this month, if they lose their jobs beforehand, the people said.

Also read: Amid layoffs, Big Tech companies to apply for fewer H-1B visas in CY24

In February, Meta said it was launching a subscription service called Meta Verified that will include a handful of additional perks and features, including Facebook and Instagram account verification badges for those who pay. It will cost $11.99 per month — $14.99 if purchased through the iOS app — and is primarily targeted toward content creators.

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