Meta is closing a New York office with looming cuts

Meta Platforms Inc. is planning to close one of its New York offices after it scaled back expansion plans in the city, according to people familiar with the matter.

The Company is exercising its option to terminate its lease at 225 Park Ave. South in Manhattan, said the people, who asked not to be identified because the information was private.

Meta has consolidated its New York workforce, built offices in Hudson Yards and advanced plans for the Farley Building near Pennsylvania Station. However, the company has rolled back some of its growth plans in the city, Bloomberg News reported.

“Two 25 Park Avenue South served as a great bridge for us to get us to our new offices in Hudson Yards and Farley,” Meta spokeswoman Jamila Reeves said in an emailed statement Monday. “We are working to ensure we are making targeted, balanced investments to support our most strategically important long-term priorities.”

Meta “remains firmly in New York and further anchors our local presence,” she added.

The planned closure comes as Meta’s Chief Executive Officer, Mark Zuckerberg, plans to make sweeping changes for the first time, including restructuring teams and reducing headcount at the company.

Meta will freeze hiring and restructure some teams to cut costs and realign priorities, Zuckerberg said during a weekly question-and-answer session with employees, Bloomberg News previously reported. The Menlo Park, Calif.-based company will likely be smaller in 2023 than this year, he said, announcing the first major budget cut since Facebook was founded in 2004.

Meta will reduce budgets for most teams, including those that are growing, and each team will clarify how they handle headcount changes. That could mean not filling roles that employees are leaving, moving employees to other teams, or working to “manage people who aren’t succeeding,” Zuckerberg said.

The cost cuts and hiring freeze are Meta’s clearest admission that ad revenue growth is slowing amid increased competition for user attention. Economic pressures aside, the company’s advertising business, built on precise customer targeting, has lost some of its edge in tracking iPhone users due to new privacy restrictions imposed by Apple Inc. Also, rival TikTok is luring younger users away from Meta’s Instagram platform.

Zuckerberg is also making a big bet on the Metaverse, an immersive virtual reality future in which he envisions humans will eventually communicate, an effort he says will lose money for many years to come.

https://www.independent.ie/business/world/meta-to-close-one-new-york-office-with-cutbacks-looming-42037941.html Meta is closing a New York office with looming cuts

Fry Electronics Team

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