Meta Platforms Inc. plans to close about a third of its offices and let most of its employees work remotely as part of a cost-cutting drive, the Financial Times reported Sunday, citing people familiar with the matter.
The company has told employees that it will close some of its smaller offices in the United States and other countries, the report said. Meta did not immediately respond to a request for comment.
The move comes as Meta, the parent company of Facebook, Instagram, and WhatsApp, grapples with slowing revenue growth and rising expenses. The company, once a Wall Street darling, has lost more than half of its market value since the start of the year.
In July, Meta reported its first-ever quarterly decline in revenue, as advertisers cut back on spending amid concerns about the economy. The company also faces increasing competition from rivals such as TikTok and ByteDance.
As part of its cost-cutting efforts, Meta has also been laying off employees. In November, the company announced plans to lay off 11,000 employees, or about 13% of its workforce.
The office closures and remote work policy are expected to further reduce Meta’s costs. The company has said that it will continue to invest in its metaverse ambitions, but it is also looking to cut costs elsewhere.
Meta is not the only tech company that is shutting down offices and letting employees work remotely. In recent months, companies such as Twitter, Google, and Amazon have also announced plans to reduce their office space and allow more employees to work from home.
The trend towards remote work has been accelerated by the COVID-19 pandemic, which forced many companies to allow their employees to work from home. Now, as the pandemic eases, some companies are looking to make remote work a permanent option.
Remote work offers a number of benefits for companies, including reduced costs, increased flexibility, and a wider pool of potential employees. However, it can also pose challenges, such as managing remote teams and maintaining company culture.
Meta’s decision to close offices and let most of its employees work remotely is a sign of the changing nature of work. As technology advances and the world becomes more interconnected, companies are increasingly realizing that they can operate effectively with a distributed workforce..
