WSJ News Exclusive | Facebook Parent Meta Is Preparing to Notify Employees of Large-Scale Layoffs This Week Probably a larger number than Twitter but they have more employees. They added large number of employees during the COVID years. Interesting that they waited until after the midterms, but probably not anything sinister about that.
They and the other tech giants have been massively overvalued for years. They produce almost nothing, the primary way they make money is via your info (which people are finally pushing back on), and they were yet another get rich quick investment for many. All that is finally leveling.
Facebook prints cash man, and for awhile it was a very reasonably valued investment, definitely got out of whack during the pandemic/post pandemic boom. They’ve been down for 2 reasons. 1)Apple iOS update gimps their ability to track customer data (so while their ad business is still a cash machine, it’s a bit impaired from before the update and has to be revalued based on that) 2)Zuck went crazy with investments into the Metaverse, seems to me people/investors might be losing faith in that having a return.
The way right wingers look at social media, really any media, reminds me of me in front of a good mirror. I look and I see an old looking guy, not like my minds eye from 20 years ago. Then I remember I’m old and the mirror is unfortunately accurate. Right wingers look at the mirror of media and see a world different than they remember, than how they know it must be or should be, and accuse the mirror of distorted liberal bias, and nurse a grievance about the conspiracy of evil liberals that distort mirrors.
All tech companies have been laying off are on a hiring freeze. They did burn a billion dollars on the metaverse though
I mean, who isn't looking forward to an avatar sitting in on a work meeting with other avatars. Going out on a date? Your avatar better put out or I swipe left. And yes, that's the extent of my knowledge of the metaverse.
No I think you got it lol. I don’t understand either, VR seems like it will always be niche. Are they really putting 10’s of billions into this? Hard to imagine where that money is going. Sounds like investors have been starting to wonder too.
All-In with Chamath, Jason, Sacks & Friedberg: E103: Tech layoffs surge, big tech freezes hiring, optimizing for profits, election preview & more on Apple Podcasts This episode of this podcast does a very good job of explaining the environment and need for Tech RIFS. In a nutshell, the environment for tech growth companies dramatically changes when interest rates rise. The premiums required over a higher risk free rate of returns become difficult to achieve. The future value of growth is less, cash flow becomes more important. They are of the opinion that Musk/ Twitter is leading on this, by shedding excess costs that cannot be carried during a high interest depressed growth environment.
Who knew they have 87K employees Facebook-parent Meta is planning the first significant layoffs in its history as the company grapples with a shrinking business and fears of a looming recession, according to the Wall Street Journal. The job cuts are expected to impact thousands of workers and could begin as early as this week, the Journal reported over the weekend, citing unnamed people familiar with the matter. Meta has a headcount of more than 87,000, according to a September SEC filing. Meta declined to comment on the report.
I don't view this as being in any way related to a recession or broader economic pain. That's just an excuse. Facebook isn't "cool" anymore, plain and simple. They're never going to grow the way they did in the past, because anyone that wants to join has been a member for the last decade plus. Anybody remember what happened to MySpace?
I don't know why people are surprised about this. Corporations are looking at year end projections and will do whatever is necessary to meet stated goals.
