Meta stock climbs as the Facebook parent reportedly joins Twitter and other tech firms with massive layoff plans

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Mark Zuckerberg
Mark Zuckerberg.

  • Shares of Meta rose Monday after The Wall Street Journal reported mass layoffs are hitting the Facebook parent this week.
  • The job cuts are anticipated to affect hundreds of workers and might be introduced as quickly as Wednesday, per the report. 
  • Meta joins Twitter, Lyft, Amazon and other tech firms which might be adjusting their workforce dimension amid macroeconomic headwinds.

Shares of Meta climbed greater than 3% early Monday following a Wall Street Journal report that the Facebook parent would announce hundreds of job cuts as quickly as this Wednesday. 

As hovering inflation and Fed tightening persist whereas recession fears abound, an growing variety of firms are trimming their payrolls. Meta joins the likes of Twitter, Amazon, Stripe, and Lyft, amongst others, which have additionally announced layoffs in latest weeks. 

According to the Journal, the share of staffers that Meta will ship dwelling is about to be a smaller determine than Twitter’s seen in the past week, nevertheless it may nonetheless shake out to be the largest variety of job cuts at a significant tech agency so far and mark the agency’s first broad job reduce in its 18-year historical past.

On Meta’s October 26 earnings name, CEO Mark Zuckerberg stated that the social media platform will focus its investments “on a small number of high priority growth areas.”

“So meaning some groups will develop meaningfully, however most other teams will stay flat or shrink over the subsequent 12 months,” he stated. “In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”

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So far in 2022, Meta stock has tumbled greater than 72%. The firm’s market worth has fallen by roughly half-a-trillion {dollars} this 12 months, and Zuckerberg has personally misplaced greater than 60% of his web value. 

In a latest be aware, Bank of America analysts forecasted that Meta will see a decelerating topline progress, as properly as rising stress from its massive metaverse investments. Those, then, will probably be additional weighed down by macro headwinds. 

“We believe in the near-term, Meta’s topline will remain under pressure as higher interest rates weigh on economic growth and online advertising demand,” BofA analysts stated. 

Read the unique article on Business Insider

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