Meta, the parent company of Facebook, Instagram, and WhatsApp, is planning the first major layoffs in its history amid growing concerns about a recession of the American economy and a business that is shrinking. The news was first announced by the Wall Street Journal, which cited sources close to the company.

According to an SEC filing on September 22, Meta currently has 87,000 employees working under it. Last month, CEO and founder Mark Zuckerberg had said during a conference call, that by the end of 2023, the company will be “either roughly the same size, or even a slightly smaller organization than we are today.”

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Experts are saying that the layoffs might be in order since advertisers have begun tightening their budgets and Apple have introduced new features on their iOS platform that prevents Meta platforms from tracking user activity.

When Meta released its quarterly results last month, it showed that its profits have halved year over year. This was caused due to the company’s spending to create the metaverse, a concept which has not met with much success yet.

Meta, in 2021, had a market capitalization of $1 trillion, but is now valued at around $250 million. Its stock price soared 5% on Monday after news broke of the company planning a significant layoff.

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Meta is not the only company that has announced significant layoffs in recent weeks. Its chief competitor, Twitter, has laid off a significant chunk of employees after new owner Elon Musk said that the company has been losing around $4 million per day.

Last week, Lyft, the rideshare app, announced that it would be laying off 13% of its total employees. Stripe, a payment-processing company, also announced its plans to shrink its employee size by 14%. Amazon has also announced that it will be pausing corporate hiring for now.