By cutting its operating costs aggressively, Meta Platforms signals that it understands it needs to boost profitability in a difficult ad market. The job cuts come just shortly after the company axed 11 thousand employees from its pay-rolls in the fourth-quarter.Ĭonsidering that the median salary of a Meta Platforms’ employee is about ~$150 thousand, according to Comparably, the annual cost savings potential related to the total number of pay-roll reductions announced since November could be around $3.0-3.1B, not including any short-term severance payments. In its latest round of job cuts, Meta Platforms said that it will lay off an additional 10 thousand employees, cut back on filling positions that have already been advertised and cancel lower priority projects. Considering that the social media company’s stock is still relatively cheap, based off of earnings, I believe a combination of a rebound in the ad market, aggressive stock buybacks and a restructuring of Meta Platforms' cost structure could be powerful catalysts to drive META into a new up-leg in FY 2023!ĭata by YCharts Meta Platforms announces a new round of job cuts in order to boost profitability

The new round of layoffs comes after Meta Platforms cut approximately 11 thousand jobs from its pay-rolls in Q4’22 as a persistent slowdown in the advertising market and early bets on the metaverse have eaten into the company's profits.

Meta Platforms ( NASDAQ: META) announced a second round of layoffs this month that is meant to improve the social media company’s productivity and boost its profitability.

Meta platforms stock