The Wall Street Journal reported on Sunday that the cuts, to be announced Wednesday, are expected to affect thousands of Meta’s 87,000 employees worldwide. Meta declined to confirm the report, but a spokesperson pointed to comments made by Meta CEO Mark Zuckerberg late last month. “In 2023, we will focus our investments on a small number of high-priority growth areas,” he said. “This means some groups will grow substantially, but most other groups will remain flat or shrink over the next year. “Overall, we expect to end 2023 as either about the same size or a slightly smaller organization than we are today.” Meta was valued last month at $270 billion, up from more than $1 trillion last year. Zuckerberg said the company’s focus will be on AI feed recommendations for Instagram Reels, advertising and converter exploration. The company reported that its metaverse division, Reality Labs, made a loss of $3.7 billion in the past three months and said those losses will “increase significantly year over year” in 2023. But Zuckerberg said he was confident the “experimental bets” the company was making would pay off. “Over time, these will end up being very important investments for the future of our business,” he said. “This is one of the most historic projects we do. People will look back [this] decades from now and talk about the importance of the work that was done here.” Alex Hern’s weekly dive into how technology is shaping our lives Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Meta shareholder Altimeter Capital Management previously said in an open letter to Zuckerberg that the company needed to streamline by cutting jobs and capital spending. He said Meta lost investor confidence as it increased spending and turned to the metaverse. Amid a tightening ad market, Meta also said it expects to lose $10 billion in ad revenue in 2022 as a result of Apple’s privacy changes that allow its users to opt out of the company being able to track users in all applications. The potential job cuts come days after Twitter cut nearly half its workforce following the company’s takeover by billionaire Elon Musk. Reuters contributed to this report