The CEO of Meta Platforms (NASDAQ:META), Mark Zuckerberg, informed staff members that additional layoffs may be necessary in the future during a virtual Q&A session on Thursday, according to The Wall Street Journal. Additionally, the company wants to add staff at a slow pace, with annual headcount growth limited to 1% to 2%.
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In the most recent round of layoffs at the company, about 4,000 workers from the tech divisions were let go. Additionally, the size of Meta’s engineering unit, which was in charge of fact-checking and addressing election-related misinformation claims, was reduced by nearly 75%. Additionally, divisions like Facebook, WhatsApp, Messenger, Instagram, and Reality Labs were also impacted.
Several workers voiced their displeasure during the meeting about the prospect of additional layoffs after the company already eliminated 21,000 workers or nearly 21,000 employees.
Addressing these concerns, Zuckerberg said, “There’s no other company in the world that delivers social experiences at the scale that we are and that does so across such a diversity of different products and use cases.”
It is noteworthy that Meta’s “year of efficiency,” which entails layoffs and cost-cutting measures, appears to have been successful. The company’s shares fell about 65% in 2022 before rising more than 70% so far this year.
These elements could have contributed to the company’s success in the first quarter, which is expected to be released on April 26, 2023. Analysts currently predict Meta will post Q1 earnings of $2.02 with $27.6 billion in revenue.
Is META a Buy, Sell, or Hold?
Currently, Wall Street is cautiously optimistic about Meta. It has a Moderate Buy consensus rating based on 39 Buy, seven Hold, and three Sell recommendations. The average stock price target of $234.31 implies an upside potential of 10%.
