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.
