Meta lays off 13% of its staff, cuts discretionary spending and extends hiring freeze

LAY OFF MORE THAN 11,000 WORKERS. JULIA BOORSTIN JOINS US WITH MORE >> THIS WAS A DRAMATIC MOVE BY META, FIRST MASS LAY-OFFS IN THE 18-YEAR HISTORY, LAYING OFF 13% OF ITS STAFF, MORE THAN 11,000 EMPLOYEES. A SOURCE TELLS US THAT META INSTRUCTED ALL THE EMPLOYEES TO NOT COME INTO THE OFFICE TODAY AND WORK FROM HOME THE STOCK IS UP NEARLY 8% THIS MORNING ON THAT NEWS AS WELL AS THE ANNOUNCEMENT THAT META IS TAKING ADDITIONAL STEPS TO BECOME LEANER AND MORE EFFICIENT BY CUTTING DISCRETIONARY SPENDING AND EXTENDING THE HIRING FREEZE THROUGH THE FIRST QUARTER. META

SLIGHTLY LOWERED THE EXPENSE OUTLOOK FOR 2023 TO THE 94 TO $100 BILLION, DOWN FROM 96 TO 100 BILLION MARK ZUCKERBERG SAYING, QUOTE, I WANT TO TAKE ACCOUNTABILITY FOR THESE DECISIONS AND FOR HOW WE GOT HERE I KNOW THIS IS TOUGH FOR EVERYONE, AND I’M ESPECIALLY SORRY TO THOSE WHO IMPACTED. RBC CAPITAL MARKETS WRITING, QUOTE, WHILE THIS ANNOUNCEMENT DOES NOTHING TO ALLEVIATE THE CONCERNS ABOUT COMPETITION, SIGNAL LOSS AND THE PERCEPTION OF EXCESSIVE METAVERSE INVESTMENT, IT’S THE FIRST TIME THE CEO HAS SHOWN A WILLINGNESS TO ACQUIESCE TO SHAREHOLDERS’ DESIRES FOR INVESTING MORE JUDICIOUSLY GIVEN THE VARIOUS HEADWINDS.

IT WARNS THAT REVENUE GROWTH WOULD DECLINE IN THE FOURTH QUARTER. META’S MARKET CAP IS NOW DOWN TO ABOUT $270 BILLION IT WAS VALUED AT OVER $1 TRILLION IN JUNE OF 2021 ZUCKERBERG TALKING IN THAT LETTER ABOUT THE NEED TO

BECOME MORE CAPITAL EFFICIENT AND HOW THERE WILL BE A MEANINGFUL SHIFT IN OPERATIONS AND CULTUR