3 ms·

My uneducated opinion is this company had some downsizing and restructuring coming. But the leading edge of a big wave of downsizes might look like this, too.

kansface 4y ago
Yeah, I'm with you, and then I read 83K employees doing Metaverse? Simply amazing! That must be at least 20 billion dollars a year! The correction in the tech sector has plenty more correcting to do it seems.
- ryanwaggoner 4y ago
  That's the total Meta headcount, across Facebook, Instagram, Messenger, WhatsApp, Oculus, etc.
- orangepurple 4y ago
  Inverse QQQ?
  - selectodude 4y ago
    SQQQ is up 10 percent today.
gumby 4y ago
I doubt it. My guess is Google/Alphabet will do the same, as they have too high a proportion of people doing things that are neither basic research or contributing to revenue in any way. You can see how that can happen when you have an unconstrained gusher of money. There's effectively zero feedback. However given the weakness of their management (see: gusher of money + lack of focus) it's unlikely that the cuts will make any difference either way. Probably many good people will simply take a buy out and then go get another interesting job. Netfix? Given their culture and their market problems one could imagine it, but their culture seems to have steered them into trying to fight back. So probably not a big wave, just some trimming, as they have already done. As for the rest of maAMA-n? They appear to be doing fine; Amazon's retail challenges are more than made up by AWS. Apple and MS are trundling along as if nothing is happening in the macroenvironment (and they each have 40+ years to have worked out their systems).
- tempsy 4y ago
  Apple is down like 6% today on reports of soft iPhone sales. In an economy where people are actually belt tightening luxury hardware sales are not exactly recession proof
  - noir_lord 4y ago
    They also have a cash mountain and I'd like to own a company that makes 94% of last years iphone sales. Over 200bn the last time I saw a figure (90bn in cash, the rest invested). https://www.investors.com/etfs-and-funds/sectors/sp500-companies-stockpile-1-trillion-cash-investors-want-it/ https://www.investors.com/etfs-and-funds/sectors/sp500-compa...
    - tempsy 4y ago
      I’m not an Apple bear, I’m saying that it’s a bit naive to say that any company will not be negatively affected by a recession that can result in downsizing or layoffs.
    - colinmhayes 4y ago
      DOesn't matter how much cash they have. Ownership will demand cuts if earnings fall.
      - gumby 4y ago
        Vanguard and Blackrock are the largest outside shareholders and are unlikely to take shareholder action. Third is Berkshire Hathaway and while they do weigh in from time to time it's unlikely in this case.
- what_ever 4y ago
  > As for the rest of maAMA-n? They appear to be doing fine; Amazon's retail challenges are more than made up by AWS. Apple and MS are trundling along as if nothing is happening in the macroenvironment (and they each have 40+ years to have worked out their systems). Apple - https://www.theverge.com/2022/7/18/23268953/apple-slow-hiring-2023 https://www.theverge.com/2022/7/18/23268953/apple-slow-hirin... https://www.bloomberg.com/news/articles/2022-08-16/apple-lays-off-recruiters-as-part-of-its-slowdown-in-hiring https://www.bloomberg.com/news/articles/2022-08-16/apple-lay... Microsoft https://www.bloomberg.com/news/articles/2022-07-20/microsoft-cuts-many-open-job-listings-in-weakening-economy https://www.bloomberg.com/news/articles/2022-07-20/microsoft... https://newsletter.pragmaticengineer.com/p/the-scoop-22 https://newsletter.pragmaticengineer.com/p/the-scoop-22 Amazon https://www.protocol.com/newsletters/sourcecode/amazon-slows-hiring https://www.protocol.com/newsletters/sourcecode/amazon-slows...

kansface 4y ago

Yeah, I'm with you, and then I read 83K employees doing Metaverse? Simply amazing! That must be at least 20 billion dollars a year! The correction in the tech sector has plenty more correcting to do it seems.

ryanwaggoner 4y ago
That's the total Meta headcount, across Facebook, Instagram, Messenger, WhatsApp, Oculus, etc.
orangepurple 4y ago
Inverse QQQ?
- selectodude 4y ago
  SQQQ is up 10 percent today.

gumby 4y ago

I doubt it. My guess is Google/Alphabet will do the same, as they have too high a proportion of people doing things that are neither basic research or contributing to revenue in any way. You can see how that can happen when you have an unconstrained gusher of money. There's effectively zero feedback. However given the weakness of their management (see: gusher of money + lack of focus) it's unlikely that the cuts will make any difference either way. Probably many good people will simply take a buy out and then go get another interesting job. Netfix? Given their culture and their market problems one could imagine it, but their culture seems to have steered them into trying to fight back. So probably not a big wave, just some trimming, as they have already done. As for the rest of maAMA-n? They appear to be doing fine; Amazon's retail challenges are more than made up by AWS. Apple and MS are trundling along as if nothing is happening in the macroenvironment (and they each have 40+ years to have worked out their systems).

tempsy 4y ago
Apple is down like 6% today on reports of soft iPhone sales. In an economy where people are actually belt tightening luxury hardware sales are not exactly recession proof
- noir_lord 4y ago
  They also have a cash mountain and I'd like to own a company that makes 94% of last years iphone sales. Over 200bn the last time I saw a figure (90bn in cash, the rest invested). https://www.investors.com/etfs-and-funds/sectors/sp500-companies-stockpile-1-trillion-cash-investors-want-it/ https://www.investors.com/etfs-and-funds/sectors/sp500-compa...
  - tempsy 4y ago
    I’m not an Apple bear, I’m saying that it’s a bit naive to say that any company will not be negatively affected by a recession that can result in downsizing or layoffs.
  - colinmhayes 4y ago
    DOesn't matter how much cash they have. Ownership will demand cuts if earnings fall.
    - gumby 4y ago
      Vanguard and Blackrock are the largest outside shareholders and are unlikely to take shareholder action. Third is Berkshire Hathaway and while they do weigh in from time to time it's unlikely in this case.
what_ever 4y ago
> As for the rest of maAMA-n? They appear to be doing fine; Amazon's retail challenges are more than made up by AWS. Apple and MS are trundling along as if nothing is happening in the macroenvironment (and they each have 40+ years to have worked out their systems). Apple - https://www.theverge.com/2022/7/18/23268953/apple-slow-hiring-2023 https://www.theverge.com/2022/7/18/23268953/apple-slow-hirin... https://www.bloomberg.com/news/articles/2022-08-16/apple-lays-off-recruiters-as-part-of-its-slowdown-in-hiring https://www.bloomberg.com/news/articles/2022-08-16/apple-lay... Microsoft https://www.bloomberg.com/news/articles/2022-07-20/microsoft-cuts-many-open-job-listings-in-weakening-economy https://www.bloomberg.com/news/articles/2022-07-20/microsoft... https://newsletter.pragmaticengineer.com/p/the-scoop-22 https://newsletter.pragmaticengineer.com/p/the-scoop-22 Amazon https://www.protocol.com/newsletters/sourcecode/amazon-slows-hiring https://www.protocol.com/newsletters/sourcecode/amazon-slows...