Meta Lays Off 8,000 Employees to Shift Focus to AI Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Yahoo Finance
- Massive Layoffs: Meta has announced the layoff of approximately 8,000 employees, representing 10% of its global workforce, as part of a strategic shift to redirect resources towards an ambitious artificial intelligence agenda, highlighting the company's response to market pressures.
- Hiring Plans Canceled: In addition to the layoffs, Meta has canceled plans to hire 6,000 new employees and is reallocating 7,000 others into AI workflow-related roles, demonstrating the company's commitment to optimizing its human resource allocation amidst a changing business landscape.
- CEO's Sentiment on Departures: CEO Mark Zuckerberg expressed gratitude towards departing employees in a memo, emphasizing his confidence in the company's future and highlighting Meta's unique position in defining the future of technology, despite the difficult decisions made.
- Significant Capital Expenditure Increase: Meta forecasts capital expenditures to reach between $125 billion and $145 billion for 2023, more than doubling the company's planned outlay for 2025, indicating a strong intent to invest in AI infrastructure and a long-term growth strategy.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 607.380
Low
655.15
Averages
824.71
High
1117
Current: 607.380
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Comparison: Both companies are spending hundreds of billions annually on data center construction, with Microsoft's capital expenditures being more accepted by investors due to its clear monetization path through cloud services, while Meta's investments have yet to yield profits, leading to market skepticism.
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See More
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