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Meta seems to have caught the withdrawal bug. Now, the question arises as to who in the company is feeling the negative effects of the job cuts.
The Wall Street Journal a New York Times The Facebook and Instagram parent said Sunday that it will cut its 87,300-member workforce this week, the company’s first round of general layoffs since its inception nearly two decades ago. None of the reports produced the expected number of job losses, although the Journal they say “many thousands of workers.”
At this point, the splits are a bit of a surprise.
Meta CEO Mark Zuckerberg has warned in recent months that his company needs to reduce its spending and headcount, largely citing the global economic slowdown and slow growth in spending. read. Zuckerberg may have hoped the reduction would be enough to accelerate the decline, but the headwinds have been strong. In late October, Meta reported third quarter results showing a 4% year-over-year revenue decline and a 52% drop in net income compared to 2021. .
Meta’s fourth-quarter outlook wasn’t particularly encouraging. The company’s management predicted revenues of $30 billion to $32.5 billion, while analysts were expecting $32.2 billion, according to CNBC. The lack of forecast sent Meta’s stock up 24% the day after its earnings announcement. Meta shares rose 5% in midday trading Monday on news of the cost cut, although the company’s stock is still down 72% year to date .
While there was little concern surrounding Meta’s decision to lay off employees, cynicism surrounded Zuckerberg’s breakdown of layoffs across departments.
As it stands, many investors want to see Zuckerberg take over his Reality Labs division, the group responsible for the company’s augmented reality, virtual reality, and metaverse games. . Zuckerberg has pumped cash into Reality Labs, which is worth $13 billion and will generate $2 billion in revenue this year. Research and development expenses rose to 33% of Meta’s third-quarter expenses, up from 20% last year.
But Zuckerberg’s comments during an earnings call last month suggested that Reality Labs—which accounted for just 18% of the company’s spending this year through September—would be a holy cow. Meta’s two main tasks at the moment: increasing its AI capabilities to make Instagram and Facebook more competitive with TikTok, and regaining control of the advertising platform after the cancellation of Apple introduced targeted marketing and operating system privacy changes last year.
“The internal signs that I’ve seen say that we’re taking the lead, we’re on the right track with these investments, so I think we need to invest in these areas,” Zuckerberg said. .
Investors expecting a dramatic look for the face will be sorely disappointed. While the free fall in Meta’s stock will weigh heavily on stock-based employees—and therefore the company’s ability to attract and retain talent—Zuckerberg isn’t under any pressure. of a CEO leading a public company. He still owns the majority of Meta’s voting shares, giving him control over the company’s financial lines.
Most likely, Zuckerberg will close the ranks on the metaverse, advertising, and AI, but to reduce expenses for companies that seek to increase the Facebook and Instagram ecosystem. .
In the past, Meta officials have rejected official projects that reflect the company’s big ambitions.
In August, Meta officials announced that Facebook’s live video marketing feature would be phased out, a result unlike the success of Chinese digital businesses before the trend. A few weeks later, Meta officials announced that they were pulling the plug on their own Facebook Gaming app, which wasn’t even close to competing with Twitch or Apple. Then, in October, Meta dropped the ax on its newsletter subscription platform, Bulletin, in an attempt to compete with Substack.
“In 2023, our investments will be focused on some very important growth areas. It means that some teams will grow well, but most of the other teams will be flat or decline in growth. next year,” Zuckerberg said last month.
Meta may not be able to hack and slash his way to thousands of job cuts. After Zuckerberg’s comments last month, though, it’s hard to imagine Zuckerberg straying from taking over TikTok and creating a metaverse—no matter what Wall Street thinks.
Want to give any ideas or suggestions to Data Sheet? Drop me a line.
Jacob Kamura
NEWSWORTHY
On reflection. Twitter officer many workers asked to return to the company after they were fired on Friday, the latest example of the surrounding chaos Elon MuskThe first 10 days are running the social media company, Bloomberg reported Tuesday. Sources familiar with the matter told Bloomberg that some employees were confused, while others considered it too important to give in to Musk’s demands for rapid changes to the platform. Musk also drew fire from some Twitter users for saying the accounts impersonate another person will be suspended immediately otherwise it would be labeled a parody—a rule that prevents Musk from saying anything.
Santa is asking for more now. Apple Sunday warning customers waiting times will be longer for iPhone 14 devices due to a COVID-related shutdown preventing production at a first Chinese assembly plant, Bloomberg reported. Apple officials said the Foxconn facility, which makes more iPhones than any other plant, is operating at “significantly reduced capacity” after the outbreak of COVID on the site. Company executives did not confirm how long the additional delays would be.
A crypto kerfuffle. The CEOs of the world’s two biggest cryptocurrency exchanges traded barbs on Tuesday Binance it was announced that it would work remove all his remaining marks bound to FTX. Binance CEO announcement Changpeng “CZ” Zhao followed by a leak in the balance sheet FTXsister company, Research Alameda, held $5.8 billion worth of awards. Zhao described the decision to downsize as a “risk management” strategy and accused FTX of appealing to industry players, the CEO of FTX. Sam Bankman-Fried accused Zhao of spreading “false information.”
It’s a big break. CarvanaThe stock’s free fall continued Monday, along with investors run an online car dealer amid concerns about its long-term outlook, CNBC reported. Shares of Carvana were down 18% in midday trading on Monday, adding to the company’s woes after the stock price surged 39% on Friday. Arizona clothing rose during the pandemic due to low loan payments and high demand for used cars, but its stock has fallen 97% year-to-date after rising interest rates and a rebound in consumer spending.
FOOD FOR THOUGHT
Sensation of slow burning. Efforts by the Biden administration to crack down on Chinese technology have paid off. The Financial Times said on Sunday the technical team Alibaba and semiconductor startup Biren Technology have begun to change their chip designs to lower processing speeds, a direct result of new export controls in the US. The moves by the two Chinese firms follow rules announced last month by U.S. officials, who said chip makers using U.S.-made equipment could not be shipped. in high-end machines in the government. The biggest chip makers outside of China make US-made products, so Chinese companies can’t import advanced semiconductors for data centers, AI-centric computing, and other other high-end computing devices.
From the document:
Alibaba, Biren, and other Chinese design firms have spent years and millions of dollars creating blueprints for advanced processors to power the country’s next generation of supercomputers and artificial intelligence algorithms. , and data centers. These are manufactured offshore by the world’s largest contract chip manufacturer, Taiwan Semiconductor Manufacturing.
But the sanctions announced by Washington last month restricting the processing power of any semiconductor shipped to China without a license have put a dent in their ambitions.
Alibaba and Biren were conducting expensive tests of their new chips at TSMC when Washington unveiled the controls. The regulations forced companies to halt production and change their designs, according to six people briefed on the situation.
WHEN YOU WERE NOT WITH YOU
Twitter doesn’t have a good version of payment verificationby Chris Morris
Elon Musk says Twitter’s monetization model could beat YouTube’s ads and longer posts and videos are allowedby Steve Mollman
As the workload increases, a technology CEO wonders how to do it rightby Sheryl Estrada
New ‘Call of Duty’ game grossed $1 billion in 10 daysby Chris Morris
Fans are thinking they should leave Twitter now that Musk is running the show: ‘It’s getting ugly here,’ by Alexandra Olson, Maryclaire Dale, and the Associated Press
Netflix is bringing back ‘The Crown’ amid a storm of criticism — even from Judi Dench — after Queen Elizabeth’s death.by Lynn Elber and the Associated Press
IBM: ‘America needs to invest in a new model of innovation—and not just in Silicon Valley,’ by Dario Gil
BEFORE GOING
Price and light. Like half frequency Airbnb Buyer, I’m used to the contact vibration when charging. You see a great price advertised in a search engine, then hit it at the last minute with hundreds of dollars in cleaning fees, service charges, and taxes. Thankfully, Airbnb is doing something about this mess. Company CEO Brian Chesky said on Monday that users will opportunity to start seeing the rewards (but not taxes) are baked into the price shown during rental searches, TechCrunch said. “I’ve heard you loud and clear—you’re like the prices aren’t clear,” Chesky tweeted Monday morning. An analysis of 1,000 Airbnb listings by NerdWallet found that fees account for 27% of the total cost of an average stay, with taxes equivalent to a 5% slice. Airbnb users should immediately switch to the new price display, which will arrive next month.
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