Meta is reportedly planning on reducing its workforce in an effort to cut costs
SEANA SMITH: All right, my play today is Meta. The Wall Street Journal reporting that the company is aiming to reduce costs by at least 10% in the next few months. And much of that is expected to come from job cuts. Now, Meta has reportedly started reducing its headcount by reorganizing departments and giving employees time to seek other roles.
Additional savings will come from slashing overhead and also consulting budgets. Shares jumped initially after the move. It moved higher here during the press conference with Jay Powell, but ending the day-- it looks like it's going to end the day in the red, with shares off just about 2%.
Now, Dave, Meta clearly has been struggling since the start of the year, off just around 50%. Over the past year, off around 60%. They're transitioning their business, focusing on the future, the metaverse. Investors aren't quite buying it. And we'll see whether or not these cost cuts really move the stock here going forward.
DAVE BRIGGS: Yeah, we got a pretty good glimpse at this back in June at the town hall when Mark Zuckerberg said ominously, realistically, there are probably a bunch of people that shouldn't be here, obviously, sending shivers throughout the whole crowd. But this is like a lot of stories. I mean, Snap, a lot of tech companies in the pandemic that ramped up hiring too high.
Meta had 83.5 at the end of the second quarter. That was up 32% from a year earlier. So they hired too many during the pandemic. This is only natural. And let me give you one number, $71 billion. That's the amount of net worth that Mark Zuckerberg has lost this year.
SEANA SMITH: Yeah.
DAVE BRIGGS: This year. Somebody's got to go when that happens to the boss.