Meta Announces Another Massive Round of Layoffs, Zuckerberg Discovers Efficiency, How Apple Avoided Significant Layoffs
We kick things off with Neil’s thoughts on Mark Zuckerberg announcing another massive round of Meta layoffs. The discussion goes over Zuckerberg’s efficiency plans. We conclude with an examination of how Apple has been able to avoid significant layoffs.
Happy Wednesday.
One quick follow-up to yesterday’s discussion about Tim Cook and mixed reality headsets. The expectation that Cook will say yes to a product that goes against Apple’s user-first ideals is misplaced. Recall comments that Cook made last year about the importance of keeping humanity at the center of AR headsets. Cook was answering a question about AR headsets succeeding in the consumer market. Here's Cook:
"I am incredibly excited about AR as you may know. And the critical thing in any technology, including AR, is putting humanity at the center of it. And that is what we focus on every day."
The "humanity at the center" wording was a subtle reference to Apple addressing long-held concerns found with a face headset.
Let's jump into today's update.
Meta Announces Another Massive Round of Layoffs
“Meta Platforms Inc. said it would cut roughly 10,000 over the coming months, the Facebook parent’s second wave of mass layoffs in what it says is an effort to be more efficient in a difficult economy.
Meta Chief Executive Mark Zuckerberg said in an email to staff on Tuesday that the company would in the coming months conduct multiple rounds of job cuts, as well as cancel some projects and reduce hiring rates as part of what he has dubbed the ‘year of efficiency.’
Company recruitment teams will be cut first, followed by restructuring and layoffs in its technology groups in late April, Mr. Zuckerberg said. Business teams will face layoffs in May, he added. The company will also stop hiring for about 5,000 open positions.
Mr. Zuckerberg said his company must cope with a longer term change in the economy, marked by the end of low interest rates, growing geopolitical tensions and costly new regulations.
‘At this point, I think we should prepare ourselves for the possibility that this new economic reality will continue for many years,’ Mr. Zuckerberg wrote. ‘Given this outlook, we’ll need to operate more efficiently than our previous headcount reduction to ensure success.’
Meta said in a securities filing Tuesday that it expects to lower its annual expenses by roughly $3 billion from an estimated range it gave on Feb. 1. It now expects to spend a total of $86 billion to $92 billion this year, including the costs of its layoffs and restructuring, which it said could total $3 billion to $5 billion.”
The 10,000 layoffs are in addition to the 11,000 layoffs that Meta announced in late 2022. This would mean Zuckerberg will have cut Meta’s workforce by 20% within just a few months (the job postings being kept open are excluded from the 20%). While it is true that Meta added significantly to its ranks from 2020 to 2022, to cut 20% of staff is a staggering percentage that should draw into question a number of key assumptions that have been found with Meta and Big Tech.
An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.
(Members: Daily Updates are always accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)
Above Avalon Membership
Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.
More information about Above Avalon membership, including the full list of benefits and privileges, is available here.
Ranking Big Tech’s 3Q22 Performance, Zuckerberg Announces Major Round of Layoffs, Disney 4Q22 Earnings (Daily Update)
In today’s update, we go over Neil’s rankings for how Big Tech performed in 3Q22. We discuss Apple, Alphabet, Amazon, Microsoft, and Meta. The discussion then turns to Zuckerberg’s drastic move to reduce Meta’s workforce by 13%. We conclude with a closer look at Disney’s earnings. Disney management is making one strategic mistake with Disney+.
Hello everyone. Let's jump right into today's update.
Ranking Big Tech’s 3Q22 Performance
CY3Q22 was a mixed bag for Big Tech (Apple, Microsoft, Amazon, Alphabet, Meta). Macro issues are not being felt evenly. At the same time, competition is impacting some companies more than others. It’s telling that maybe the biggest surprise to come out of 3Q22 earnings season came in November, after everyone reported,
An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.
(Members: Daily Updates are always accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)
Above Avalon Membership
Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.
The daily updates have become widely read and influential in the world of Apple and technology. They are unmatched in the marketplace in terms of comprehensive analysis and research on all things Apple. Members reside in 60 countries and hold a diverse range of backgrounds and occupations. They include Silicon Valley executives and investors, the largest Apple shareholders, and the leading Apple journalists in the business.
More information about Above Avalon membership, including the full list of benefits and privileges, is available here.