Facebook (yes, Meta) is facing real challenges.
Facebook (yes, Meta) is facing real challenges. The company's stock has lost more than 60% of its value from the peak. If it does not manage this well, this company may fade.
Meta CEO Mark Zuckerberg has announced a hiring freeze at the company, Bloomberg reports, citing an anonymous source who attended Thursday's Q&A meeting. Zuckerberg also said the Facebook parent company would be looking for additional ways to cut spending, with headcount decisions made by individual teams. Some employees may be shifted within the org and leaders will look to “manage out people who aren't succeeding.” Meta continues to face steep competition from other social networks like TikTok and the decision to go all in on the metaverse was an "expensive bet" that could take years to pay off.
- Meta's head of people sent a memo to employees saying 2023's budget would be "very tight," according to The Wall Street Journal.
- Thursday's announcement comes a week after it was reported Meta was planning to cut expenses by at least 10% in the coming months; Zuckerberg said as early as July that Meta was looking to trim overall headcount. (LinkedIn News)
As Facebook battles it future, investors are running away from Apple after a downgrade: "Apple saw $120 billion wiped off its market cap as the Bank of America changed its rating to neutral, from buy, on Thursday. The tech giant's share price dropped by 4.9% following the downgrade, which sent other tech companies' shares tumbling. The downgrade comes on the heels of disappointing uptake of the company's new iPhone 14 basic model, particularly in China, its biggest market. Apple stock is now worth 21% less than it was at the end of 2021, with Nasdaq down 31% in this time."
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