Meta shares rose premarket after the social-media giant announced widespread layoffs!
Shares of Facebook parent Meta Platforms rose after founder Mark Zuckerberg said the social-media company would cut more than 11,000 jobs.
Tweet on Meta’s massive layoffs
Shares of @Meta rose after Zuckerberg said company would cut more than 11,000 jobs.
The shares are up 8%, on pace for their largest one-day percentage increase since a more-than-17% jump in April, according to @DowJones market data.#socialmedia #MetaLayOffs pic.twitter.com/gTO1B17uPv
— The_Journalbiz (@the_journalbiz) November 9, 2022
FactSet chart on Meta’s layoff stock reaction
The shares are up nearly 8%, on pace for their largest one-day percentage increase since a more-than-17% jump in April, according to Dow Jones Market Data. They’re the best performers on the S&P 500.
The job cuts equate to 13% of the company’s workforce. In a letter to employees, Mr. Zuckerberg also announced plans for spending cuts and said Meta would extend a hiring freeze through the first quarter.
In a securities filing, Meta confirmed its fourth-quarter revenue outlook but tweaked its 2023 expense budget to account for a significantly slower pace of hiring.
It is now forecasting expenses of $94 billion to $100 billion, compared to its previous forecast of $96 billion to $101 billion.
The Wall Street Journal reported Meta’s job-cutting plans on Sunday night, helping spark a stock rally this week. Still, the stock remains sharply down this year, having ended 2021 above $336 a share