Meta Soars 7% After Laying Off 11,000 Employees, As the Company Cuts Costs

Facebook by Meta Inc.
Facebook by Meta Inc.

Meta Platforms shares rallied Wednesday after the Facebook parent said it will lay off more than 11,000 employees as it looks to cut costs.

Its CEO Mark Zuckerberg said in a letter to employees Wednesday that the tech behemoth would slash around 13% of its workforce and extend its current hiring freeze until the end of March next year.

Meta’s stock added 7.53% at $103.71 at last check, as investors digested the job cuts and other cost reductions outlined by the social giant, which downgraded its fourth-quarter guidance when issuing a dismal earnings report in October.

In an 8-K filing published Wednesday, Meta cut its expense guidance for next year, from $96 billion and $101 billion to $94 billion and $100 billion.

Meta’s stock is now 71% lower year-to-date, as soaring interest rates and mounting fears of a recession caused investors to ring the alarm about a slowdown in digital ad spending.

The company said Wednesday it expects the losses to continue in its metaverse-focused Reality Labs division, which has already shed around $9 billion so far this year.