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I do not believe the statement. Whatever the reasons were (and we can probably guess some of those), they probably spent significant effort to picture it in th

I do not believe the statement. Whatever the reasons were (and we can probably guess some of those), they probably spent significant effort to picture it in the most palatable way possible. My take would be: * They hired a lot of people in a short time and with this probably their productivity fell a lot. They want to remove ballast and hopefully improve average productivity. * They are scared about falling share price. A lot of Meta employees get significant part of their comp in form of shares and so falling share price will mean their best people are going to start to leave or they will have to increase their comp considerably. So they are looking to appease investors by cutting costs. * They are loosing users and expect to start loosing ad revenue. Having on idea how to improve their revenue the only way out to stay in the game for longer is to start cutting costs more aggresively. * They have no idea what to do with all those people they have hired because their CEO is doing something else at the moment. And (in my experience, not based on facts) the culture at Meta is very likely that everybody is looking up to CEO or nothing happens.

chrisseaton 4y ago
Share value is down everywhere. Where would people move to for better compensation?
- purpleflame1257 4y ago
  A place with more TC in cash.
  - chrisseaton 4y ago
    More than Facebook?
  - missedthecue 4y ago
    Does Netflix have 11,000 open positions?
- twawaaay 4y ago
  I am talking best employees. People who will find good job no matter what. People you need to keep because they are actually the ones who make the show going. You got hired thinking you will get some amount of money (salary + shares) now those shares are worth little even before they got vested. So you cut your loss and get hired at some other place that will give you more of your comp in form of salary than shares because you feel burned.
- sokoloff 4y ago
  If share value is down everywhere, it’s in many employees’ best interests to reset their grants at another company (at a lower grant price).
- glenngillen 4y ago
  Many large companies have pretty rigid comp review processes and cycles. If you’re a high performing employee who got a stock refresh earlier this year there’s a good chance you’re down 50% or more at many companies. Switch companies and there’s a chance you’ll get a new grant for the original gross value but at the new lower share price. If your belief that it’s macro trends rather than individual company performance that’s depressing share value it could be a very profitable time to change roles (assuming you can, obviously there’s also an influx of people looking for work in the past few weeks).
- Cthulhu_ 4y ago
  Smaller / newer companies with investment money to burn who expect results. Although I can imagine investors are slowing down a bit as well - actually they have done so I believe for the past half decade or so.
itsoktocry 4y ago
>expect to start loosing ad revenue They are already bleeding ad revenue, badly. But yeah, agree with you overall. In summary, they were flush with money for a while, invested and hired like crazy, couldn't grow revenue and productivity and are now shedding costs. We have to remember that these companies weren't affected by layoffs at the start of the pandemic; in fact, the opposite. They boomed.
dontwatchthis 4y ago
well it could be all of the above....what i find odd is that the Facebook CEO already knew that demand for ad revenue would already drop in 2023 and they were still hiring up untill now....they should have started cutting costs earlier
- bombcar 4y ago
  You don’t want to be the first to pull back in these situations as it makes you look weak. Stripe and Twitter took a lot of heat off of Meta; if they had done this in March it’d be a whole different story.
- confidantlake 4y ago
  I interviewed with Meta in the summer and they cancelled my onsite interview. So even back then they had already slowed their hiring.
colinmhayes 4y ago
They claimed their monthly, daily, and total engagement are all up in this quarters earnings. Ads shown up 17% price per ad down 18%. Doesn’t seem like losing users.

chrisseaton 4y ago

Share value is down everywhere. Where would people move to for better compensation?

purpleflame1257 4y ago
A place with more TC in cash.
- chrisseaton 4y ago
  More than Facebook?
- missedthecue 4y ago
  Does Netflix have 11,000 open positions?
twawaaay 4y ago
I am talking best employees. People who will find good job no matter what. People you need to keep because they are actually the ones who make the show going. You got hired thinking you will get some amount of money (salary + shares) now those shares are worth little even before they got vested. So you cut your loss and get hired at some other place that will give you more of your comp in form of salary than shares because you feel burned.
sokoloff 4y ago
If share value is down everywhere, it’s in many employees’ best interests to reset their grants at another company (at a lower grant price).
glenngillen 4y ago
Many large companies have pretty rigid comp review processes and cycles. If you’re a high performing employee who got a stock refresh earlier this year there’s a good chance you’re down 50% or more at many companies. Switch companies and there’s a chance you’ll get a new grant for the original gross value but at the new lower share price. If your belief that it’s macro trends rather than individual company performance that’s depressing share value it could be a very profitable time to change roles (assuming you can, obviously there’s also an influx of people looking for work in the past few weeks).
Cthulhu_ 4y ago
Smaller / newer companies with investment money to burn who expect results. Although I can imagine investors are slowing down a bit as well - actually they have done so I believe for the past half decade or so.

itsoktocry 4y ago

>expect to start loosing ad revenue They are already bleeding ad revenue, badly. But yeah, agree with you overall. In summary, they were flush with money for a while, invested and hired like crazy, couldn't grow revenue and productivity and are now shedding costs. We have to remember that these companies weren't affected by layoffs at the start of the pandemic; in fact, the opposite. They boomed.

dontwatchthis 4y ago

well it could be all of the above....what i find odd is that the Facebook CEO already knew that demand for ad revenue would already drop in 2023 and they were still hiring up untill now....they should have started cutting costs earlier

bombcar 4y ago
You don’t want to be the first to pull back in these situations as it makes you look weak. Stripe and Twitter took a lot of heat off of Meta; if they had done this in March it’d be a whole different story.
confidantlake 4y ago
I interviewed with Meta in the summer and they cancelled my onsite interview. So even back then they had already slowed their hiring.

colinmhayes 4y ago

They claimed their monthly, daily, and total engagement are all up in this quarters earnings. Ads shown up 17% price per ad down 18%. Doesn’t seem like losing users.