Meta is reportedly trimming its workforce in the newest slate of changes designed to help the tech titan remain competitive amid the spiking popularity of upstart rival tech platforms such as TikTok.
Meta, the parent company of Facebook and Instagram, is looking to cut expenses by at least 10% in the coming months, including by putting some employees on a 30-day list to look for new jobs before getting a pink slip, the Wall Street Journal reported.
The downsizing of its workforce comes amid broader business struggles for Meta and the growth of TikTok. Facebook posted its first year-over-year revenue decline in the second quarter of 2022. It was the tech giant’s third consecutive quarter of shrinking profits, according to MarketWatch.
Earlier this year, Facebook reportedly moved some engineering and product personnel away from its newsletter and information services to more directly address services for creators who have flocked to TikTok.
TikTok has proven successful at capturing audiences targeted by longer-established social media companies. User time spent scrolling on TikTok surpassed Facebook and Instagram in 2020, according to the market research company Insider Intelligence.
The changes at Facebook also signal an increasing focus on augmented and virtual reality offerings as a priority over other services and its social media platforms. Meta CEO Mark Zuckerberg told The Verge last year he intended to transition his business from primarily being a social media company to a “metaverse” company in the “next five years or so.”
Meta corporate officials did not immediately respond to request for comment.