Meta is pulling out of a major New York office deal as it prepares to cut company-wide budgets

Facebook’s parent company is the latest company to back out of a deal for its New York office amid a weak economy and cut internal budgets.

Meta is looking to close its office at 225 Park Ave. South, Manhattan, Bloomberg reported quoted people familiar with the matter.

“The two 25 Park Avenue South have served as a great bridge to bring us to our new offices in Hudson Yards and Farley,” a Meta spokesperson said. Luck. “We are working hard to ensure we are making balanced, focused investments to support our most strategic long-term priorities. We remain firmly committed to New York and continue to maintain our local footprint. “

The California-based tech giant has been scaling back its expansion in the city. Earlier this year, it abandoned plans to lease 300,000 square feet of workspace in Astor Place, where it already has its current office, according to Bloomberg. The company also has plans to add more office space in New York’s Hudson Yardsbut has since stopped.

Other tech companies have also pulled out of New York. Amazon to be in discussions with JP Morgan & Chase to lease some of its office space, but later reportedly suspended negotiations.

Mark Zuckerberg, CEO of Meta, talked about trying to grapple with a slowing economy that he recently described in a call with employees as one of the “worst recessions ever”. the most we’ve seen in recent history.” according to Bloomberg. The company is cutting budgets, including reducing hiring and headcount, while also planning to reorganize some of its business units.

This will be the first major budget cut at Meta since its founding 18 years ago.

Zuckerberg has pushed Meta, which also owns Instagram and Whatsapp, to focus more on the metaverse, a largely unrealized virtual world. But the company’s massive outlay on the project won’t pay off for years while advertising, its main business, faces challenges as marketers cut spending due to the growing economy. economy is in recession.

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