Meta Sweeps Again – More Layoffs
The newest round of tech layoffs has just hit major headlines, however, it will be a second attempt to cut costs for tech giant Meta. After global job cuts totaling the loss of 11,000 employees, Meta now continues its plan to add more to that dreary number. The previous shed of headcounts was equal to 13% of Meta’s workforce, and although not currently specified, the tech firm will plan to increase that percentage leading to several other thousands lost in the process. The news comes as Zuckerberg, Meta CEO and Founder, coined 2023 as “the year of efficiency”, with a complete rehaul and cost cuts to boost margins and please shareholders.
The seemingly new and reformed Facebook-parent ultimately decided its previous year was certainly not its best, losing over $700 billion in market cap and 75% of its stock value. Now, Zuckerberg has taken a new approach, an approach that has delighted investors with their most recent better-than-expected Q4 earnings. Nevertheless, the newest report for these purported job cuts claims they may start as early as this upcoming week; as stated by Zuckerberg, these layoffs are solely an attempt to restructure the company, removing layers of middle management to increase decision-making and efficiency. So far, it seems investors have been more than pleased with the revised leadership Meta has begun to enact, with the stock up almost 50% year-to-date
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.