According to reports from Bloomberg, which reached the Meta Platforms (META.US) report, the company is planning further layoffs of thousands of employees, which are likely to be finalized next week because the company wants to meet its financial targets. The news pleased the stock market, as investors had previously accused the company of imprudent disposition of funds, among other things. Shares gain before opening up 2%
- In November, Meta announced the first wave of layoffs in its history, affecting 11,000 employees (13% of FTEs). However, the next round of layoffs was widely expected among employees.
- Mark Zuckerberg admitted on a conference call after the results that this year will be a 'year of efficiency' for the company. The company is also undergoing 'efficiency reviews' - For the stock market, this is further proof that these were not 'empty words.'
- According to Bloomberg, the company is still working on efficiency and streamlining its decision-making model by offering more influence to top managers and removing entire teams it deems unnecessary;
- This week's round of layoffs according to media reports is solely due to meeting financial targets and is not related to team performance. A Meta spokesman declined to comment to Bloomberg on the plans;
- Last week, the company announced that the price of the headset, for virtual reality (AR/VR) Meta Quest Pro will be significantly reduced from $1499.99 to $999.99. Similarly, the 256 GB version of the Quest 2 will cost $429.99, rather than $499 as at present. In a statement, the company said the reason for the reductions is to make the devices available to as many people as possible around the world but the likely reason is to reduce inventory and stimulate demand during inflation when consumers control spending.
Meta Platforms (META.US) shares, D1 interval. The price climbed above the SMA100 and SMA200 but still failed to cross the 71.6 Fibonacci retracement.At this point, the main resistance level is the $200 level. Short-term support, on the other hand, is the $170 price bottom of the January correction. Source: xStation5
