- Thousands of job cuts may be announced by Meta (META, $96.72) later this week due to a general decline in advertising spending as well as losses in the group's growing metaverse business, which earlier this month contributed to the release of disappointing third quarter earnings and a bleak outlook for the near future.
- Meta shares rose 5.4% to trade at $95.69 per share. Despite the increase, the stock is still down around 70% year to date which is expected to worsen over the next year.
- Meta announced it would increase investments in Reality Labs, the subsidiary that would house the business's metaverse aspirations, and has absorbed more than $9.4B in losses through the first nine months of the year.
08 Nov 2022
META
Meta’s Mass Firing
It plans to lay off thousands of employees starting this week
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Why it matters
The decision to invest more money will result in an annual rise in capital spending of around $4B. For the forthcoming year, the core social media business of Meta will now be valued between $30B and $34B. Meta predicts that revenues will range from $30B to $32.5B.