Meta Platforms scales back office in New York City to reduce costs

Meta Platforms, Inc. META scaled back its presence in a prime New York City location to reduce its costs in order to deal with a slow online advertising market.

Meta subleased a portion of its facilities at 50 Hudson Yards, one of New York's most enormous commercial towers, according to CNBC.

In 2019, Meta completed a 1.5 million square foot lease with Hudson Yards for more than 1.5 million square feet of office space, which included three Hudson Yards buildings.

Meta leased over 250,000 square feet of space across two Hudson Yards towers.

A Meta spokeswoman told CNBC in an email that the past few years have brought new opportunities around the office, and we are prioritizing making focused, balanced investments in order to support our most strategic long-term priorities and lead the way in creating the workplace of the future. Our goal is to build a best-in-class remote work experience to help everyone do the best work of their careers no matter where they are. Meta is committed to New York City, as evidenced by the recent opening of the Farley Building and 50 Hudson Yards, which is estimated to open next year, further anchoring our local footprint. In October, Meta released a weaker-than-expected forecast for the fourth quarter, indicating that revenue would drop for the third straight period.

Over 11,000 workers were laid off earlier this month, representing 13% of its workforce.

Price Action: META shares traded higher by 1.98% at $120.44 on the last check Thursday.