Meta's revenue and profit grew around 35% from 2020 to 2021, so they hired more people in 2021-22 assuming growth would continue to grow [1]. Their revenue, instead of growing at the same rate, actually went into negative (2022 revenue was actually less than 2021) and is predicted to be flat for the next few years. With increasing headcount and same revenue, their profitability dropped like a rock. So what did Zuck do? Cut 21K jobs in two rounds, which brings employee count to just under 2021 levels [2]. That means, at least financially, they are in the same state they were, at 2021 levels, and can continue to coast with profit margins returning to where they were at that time. And it would explain why Zuck is targeting only a 1-2% growth in headcount each year for the next few years, basically he doesn't want to let expenses (including headcount) increase faster than revenue. Sources: https://www.google.com/finance/quote/META:NASDAQ https://www.statista.com/statistics/273563/number-of-facebook-employees/
Classic blind
Lol yeah - it’s like, have a beer
More like a classic blind crappy post by someone who thinks they're being insightful
In 2021 people thought fb had an exponential growth future
At 500b, people were expecting Facebook to have an exponential growth?
Who thought that? Wasn’t renaming the company to Meta an obvious death knell. Facebook branding is toxic with younger generation and they’re not making older folks anymore lol
All these companies had record profits when they did layoffs. There is no relation between profit and employment.
Profit per head went down which is bad. Record profits != record profit margins
The profits are never enough. Just one example, Back in the day HP self it's healthy and profitable PC business, because profits were not enough. Then they paid $10B for a small startup that does text search, Lol... Coz they thought there would be more profits.
Now let’s see you factor in the billions spent on building the metaverse and do the analysis again
That is already included in profit margin and EPS
The bar
Bro, companies have to show YOY growth. That either comes from revenue or margin in existing revenue. Meta has entered a stage where they have to show YOY improvements in operating efficiency because they’ve stopped growing, and considered nearly all of their operating expense is labor where do you think that’s going to come from?
This, they need to get at 50k-55k employees. I don't know where exactly they ended up now but it feels like there is another round waiting. Perhaps they try to PIP a 5% and divest certain initiatives instead of a company wide layoff and hope their high attrition rates will help them get to the target number.
Don't quit your day job
Microsoft guy is brilliant
am zuck, can confirm
Your username confirms it 👍
What OP misses is that meta benefits from efficiency gains from ongoing layoffs with very few consequences. A permanent restructure makes a lot of sense for companies like meta that are not set up well to significantly grow top line anytime soon.
Cool story bro.
Thanks bro 😎
You got it bruh.