Meta intends to reduce expenses by 10% during the coming months.

By the end of 2022, Meta hopes to reduce costs by about 10%, according to a Wall Street Journal report published on Wednesday.

The corporation is reportedly planning to announce employment cuts, but these won’t be formal layoffs; instead, internal department restructuring will take place.

The cost-cutting news was announced just days after the Bloomberg Billionaires Index revealed that Meta CEO Mark Zuckerberg’s net wealth plummeted by a staggering $71 billion in 2022. As a result, he fell to the 20th position among all billionaires worldwide, his lowest ranking since 2014.

A major reason behind the loss in net worth was the $55.9 billion loss that Meta incurred after the rebranding from Facebook and the renewed focus on Metaverse and similar applications.

In terms of costs and expenses, the business had a sharp increase of 22% in 2022, bringing the total to $20.4 billion. According to the article, Meta will be aiming to decrease costs in other departments because a significant portion of it was invested in the Metaverse.

Chris Cox, the chief product officer, informed the staff that the company is ‘going through tough challenges right now and the headwinds are fierce.’

According to the WSJ, he continued, ‘We need to perform flawlessly in a climate of slower growth, where teams should not expect enormous influxes of new engineers and money.’