Meta says it’s planning to shrink its office space as more employees are working remotely

Meta said on Wednesday it was planning to reduce its office space as more employees choose to work from home.

When releasing its third-quarter results, the social-media giant said total expenses in the third quarter came to $22.05 billion, up 19% from the same period last year. This included a $413 million impairment loss for some operating leases as part of efforts to match its office facilities footprint with anticipated operating needs, it added.

It comes as Meta, notably its top executives, shifts to remote work.

Dave Wehner, Meta’s chief financial officer, said in an earnings call the company was making “significant changes across the board to operate more efficiently” and had “increased scrutiny on all areas of operating expenses.”

Wehner said these changes “will take time to play out” because they follow “a substantial investment cycle.”

“Some steps, like the ongoing rationalization of our office footprint, will lead to incremental costs in the near term,” Wehner said.

Meta expected 2022 total expenses would be between $85 billion and $87 billion, with an estimated $900 million in extra fees “related to consolidating our office facilities footprint,” he said.

Wehner added that Meta projected 2023 total expenses are set to be between $96 billion and $101 billion, with $2 billion estimated to go towards consolidating the company’s office footprint.

The 2023 costs come as “we continue to rationalize our real estate footprint,” Susan Li, Meta’s vice president of finance, said later in the call.

Meta has embraced remote work, especially its senior executives. CEO Mark Zuckerberg likes to work from his compound in Hawaii, while Instagram boss Adam Mosseri has recently traveled and worked remotely from Los Angeles, Cape Cod, and also Hawaii, sources told The Wall Street Journal.

Meta employees are expected to spend at least half their time in the office. Having said that, any full-time Meta employee whose job can be done online can apply to become a fully remote worker.

Meta did not immediately respond to Insider’s request for comment. 

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