Meta is reportedly set to cut thousands of jobs in a new round of layoffs. The job cuts could begin as early as this week, according to a Bloomberg News report. The move follows a major cost-cutting initiative in November 2022, which resulted in 13% of Meta workers losing their jobs.

Meta CEO Mark Zuckerberg has stated that the company is focusing on reducing costs in 2023, describing it as the “Year of Efficiency.” In February, he informed analysts that the company plans to eliminate underperforming projects and remove middle management layers to expedite decision-making.

The job cuts come at a time when Meta faces challenges in its core online advertising business, with increased competition from TikTok and a tough digital advertising market. Additionally, the company’s expenses rose by 22% to $25.8 billion during Q4 2022 (CNBC report), while overall sales declined by 4% to $32 billion.

Despite these challenges, Meta is heavily investing in the metaverse, which it believes represents the next frontier for mainstream computing. The company’s Reality Labs division, which is responsible for developing the virtual reality and augmented reality technologies needed for the metaverse, reported revenue of $727 million during Q4 2022 but also recorded a $4.28 billion operating loss.

Zuckerberg has indicated that he sees layoffs as a last resort and is taking accountability for the company’s cost-cutting measures. While Meta’s restructuring efforts may increase efficiency, it remains to be seen whether they will bring expenses in line with revenue growth.