Facebook's parent Meta is expected to begin large-scale lay-offs this week that will affect thousands of employees.
US media have reported that the job cuts could be announced as early as tomorrow.
During Meta's disappointing third-quarter results, chief executive Mark Zuckerberg stated that staffing might fall.
"In 2023, we're going to focus our investments on a small number of high-priority growth areas," he said.
The BBC says Meta has about 87,000 employees worldwide across its different platforms, which include Facebook, Instagram and WhatsApp.
The plans for job cuts follow difficulties across the tech sector as the industry contends with slowing global economic growth.
Some teams to shrink
Mr Zuckerberg said he expected some teams to "stay flat or shrink" over the next year.
"In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organisation than we are today."
Ad-supported platforms such as Facebook and Alphabet's Google are suffering from advertisers' budget cuts as they struggle with inflation and rising interest rates.
Last Thursday, Silicon Valley firms Stripe and Lyft announced large-scale lay-offs, while Amazon said it would freeze hiring in its corporate offices.
Twitter is expected to get rid of half its 7,500 employees.
Not only is the global economic situation an issue for Meta, but there is also competition from TikTok, privacy changes from Apple, concerns about massive spending on the metaverse and the ever-present threat of regulation.
Metaverse investments
Mr Zuckerberg has said he expects the metaverse investments to take about a decade to yield positive results.
In the meantime, he says he has to reorganise teams to trim costs.
The company's market value over the past year is down more than 70% to £524billion.
FTSE 100
The UK's top share index, the FTSE 100, was down 54 points at 7,245 shortly after opening this morning, following yesterday's 34-point loss.
Brent crude futures were down 0.23% at $97.69 a barrel.
Companies reporting today
- Full-year results: Associated British Foods
- Half-year results: 3i Infrastructure, Oxford Instruments
- Fourth-quarter results: Disney
- Trading update: Persimmon, Direct Line