In another alarming sign for the office market, Meta revealed it would be cutting back on its office footprint as it transitions to a more remote model.
During its third-quarter earnings call, the company said its expenses grew 19% from the same time last year, which included $413 million in impairment losses from some of its leases.
According to Meta, its total expenses for 2022 is forecasted to come to $85 billion and $87 billion, with $900 million making up the company’s office restructuring.
Next year, Meta predicts that its office consolidation expenses will amount to around $2 billion.
“Some steps, like the ongoing rationalization of our office footprint, will lead to incremental costs in the near term,” said Dave Wehner, chief financial officer at Meta.