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Meta’s Stealth Cuts Why Instagram, WhatsApp, Reality Labs Teams Are Shrinking

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Meta’s Stealth Cuts: Why Instagram, WhatsApp, Reality Labs Teams Are Shrinking 

Meta is implementing targeted layoffs across several departments, including WhatsApp, Instagram, and Reality Labs, as part of ongoing restructuring efforts. 

Company spokesperson Dave Arnold confirmed to The Verge that this move aligns resources with Meta’s long-term strategic goals and location strategy.

Unlike previous mass layoffs, these cuts coincide with specific team reorganizations. Some employees are being relocated, while others are transitioning to different roles within the company. In cases where positions are eliminated, Meta works to find alternative opportunities for affected staff.

Notable among those impacted is Jane Manchun Wong, a former member of the Threads team known for her insights into unreleased app features. Per The Verge, Wong’s departure signals that even high-profile employees are not immune to the restructuring.

This round of reductions follows earlier job cuts in Meta’s Reality Labs division and significant workforce reductions in 2022 and 2023. The company laid off 11,000 employees in 2022 due to overestimated post-pandemic growth, followed by an additional 10,000 cuts in 2023 as part of CEO Mark Zuckerberg’s “Year of Efficiency” initiative.

In a separate incident, Meta terminated 24 Los Angeles-based employees for allegedly misusing their $25 daily meal credits to purchase personal items such as acne pads, wine glasses, and laundry detergent.

Despite ongoing restructuring, Meta’s stock has surged over 60% this year. 

The company’s Q2 2024 results exceeded revenue expectations, with an upbeat sales forecast for the third quarter. This performance suggests that strong digital ad spending on Meta’s platforms may offset the costs associated with its AI investments.

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David Adler is an entrepreneur and freelance blog post writer who enjoys writing about business, entrepreneurship, travel and the influencer marketing space.

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