Meta, which owns Facebook, Instagram and WhatsApp, has announced that it will cut 13% of its workforce.
The first mass lay-offs in the firm's history will result in 11,000 employees, from a worldwide headcount of 87,000, losing their jobs.
Meta chief executive Mark Zuckerberg said the cuts were "the most difficult changes we've made in Meta's history".
The news follows major lay-offs at Twitter, which cut about half its staff, and other tech firms.
Mr Zuckerberg blamed massive long-term expectations for growth based on the firm's rise in revenue during the pandemic.
"Many people predicted this would be a permanent acceleration," he wrote, "I did too, so I made the decision to significantly increase our investments."
Instead he said "macroeconomic downturn" and "increased competition" caused revenue to be much lower than expected
Mr Zuckerberg told hundreds of Meta executives of the plans on Tuesday, the Wall Street Journal reported.
US employees will receive redundancy payments worth 16 weeks pay plus a week for every year worked. Additional benefits will also include continuing to provide family health insurance for six months.
Affected Meta employees will receive an email soon, he said, and will have an opportunity to ask questions.