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  • 23,470 Shares in Meta Platforms, Inc. (NASDAQ:META) Bought by Accuvest Global Advisors

    23,470 Shares in Meta Platforms, Inc. (NASDAQ:META) Bought by Accuvest Global Advisors

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    Accuvest Global Advisors bought a new position in Meta Platforms, Inc. (NASDAQ:METAGet Rating) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 23,470 shares of the social networking company’s stock, valued at approximately $2,824,000. Meta Platforms accounts for approximately 0.9% of Accuvest Global Advisors’ holdings, making the stock its 27th biggest position.

    Several other large investors have also made changes to their positions in the company. Charles Schwab Investment Management Inc. raised its position in shares of Meta Platforms by 1.1% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 11,830,209 shares of the social networking company’s stock worth $2,630,566,000 after buying an additional 128,126 shares during the period. DNB Asset Management AS purchased a new position in shares of Meta Platforms in the 4th quarter worth $401,963,000. Renaissance Technologies LLC raised its position in shares of Meta Platforms by 310.7% in the 1st quarter. Renaissance Technologies LLC now owns 3,001,000 shares of the social networking company’s stock worth $667,302,000 after buying an additional 2,270,300 shares during the period. Ruane Cunniff & Goldfarb L.P. raised its position in shares of Meta Platforms by 7.2% in the 1st quarter. Ruane Cunniff & Goldfarb L.P. now owns 2,834,735 shares of the social networking company’s stock worth $630,332,000 after buying an additional 189,688 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. raised its position in shares of Meta Platforms by 12.5% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,244,201 shares of the social networking company’s stock worth $499,020,000 after buying an additional 249,926 shares during the period. 60.92% of the stock is owned by hedge funds and other institutional investors.

    Insider Transactions at Meta Platforms

    In other news, CAO Susan J.S. Taylor sold 1,400 shares of the business’s stock in a transaction that occurred on Thursday, February 16th. The stock was sold at an average price of $172.96, for a total transaction of $242,144.00. Following the completion of the transaction, the chief accounting officer now directly owns 2,949 shares in the company, valued at $510,059.04. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In related news, CTO Andrew Bosworth sold 10,888 shares of the business’s stock in a transaction that occurred on Wednesday, February 15th. The stock was sold at an average price of $179.48, for a total transaction of $1,954,178.24. Following the sale, the chief technology officer now owns 12,743 shares of the company’s stock, valued at $2,287,113.64. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Susan J.S. Taylor sold 1,400 shares of the business’s stock in a transaction that occurred on Thursday, February 16th. The stock was sold at an average price of $172.96, for a total value of $242,144.00. Following the sale, the chief accounting officer now directly owns 2,949 shares in the company, valued at approximately $510,059.04. The disclosure for this sale can be found here. Over the last three months, insiders sold 68,342 shares of company stock worth $12,285,012. Company insiders own 14.03% of the company’s stock.

    Wall Street Analyst Weigh In

    Several research analysts have commented on the company. HSBC lowered Meta Platforms from a “hold” rating to a “reduce” rating and set a $110.00 price objective on the stock. in a research report on Friday, February 3rd. Rosenblatt Securities raised Meta Platforms from a “neutral” rating to a “buy” rating and raised their price objective for the company from $104.00 to $220.00 in a research report on Thursday, February 2nd. Wells Fargo & Company raised their price objective on Meta Platforms from $250.00 to $280.00 in a research report on Thursday. Oppenheimer raised their price objective on Meta Platforms from $235.00 to $260.00 and gave the company an “outperform” rating in a research report on Wednesday, March 15th. Finally, Morgan Stanley raised their price objective on Meta Platforms from $130.00 to $190.00 and gave the company an “equal weight” rating in a research report on Thursday, February 2nd. Four analysts have rated the stock with a sell rating, eight have given a hold rating, thirty-seven have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $209.94.

    Meta Platforms Stock Performance

    Shares of NASDAQ META opened at $195.61 on Monday. The company has a current ratio of 2.20, a quick ratio of 2.20 and a debt-to-equity ratio of 0.08. The stock has a 50 day simple moving average of $166.42 and a 200-day simple moving average of $140.06. The company has a market cap of $507.15 billion, a PE ratio of 22.80, a P/E/G ratio of 1.78 and a beta of 1.18. Meta Platforms, Inc. has a 12-month low of $88.09 and a 12-month high of $236.86.

    Meta Platforms (NASDAQ:METAGet Rating) last issued its quarterly earnings data on Wednesday, February 1st. The social networking company reported $3.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.12 by $0.88. The business had revenue of $32.17 billion during the quarter, compared to the consensus estimate of $31.69 billion. Meta Platforms had a return on equity of 21.23% and a net margin of 19.90%. The business’s revenue was down 4.5% on a year-over-year basis. During the same period in the previous year, the firm posted $3.67 earnings per share. On average, equities research analysts forecast that Meta Platforms, Inc. will post 10.38 EPS for the current year.

    Meta Platforms Profile

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    Meta Platforms, Inc, engages in the development of social media applications. It builds technology that helps people connect, find communities, and grow businesses. It operates through the Family of Apps (FoA) and Reality Labs (RL) segments. The FoA segment consists of Facebook, Instagram, Messenger, WhatsApp, and other services.

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    Want to see what other hedge funds are holding META? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Meta Platforms, Inc. (NASDAQ:METAGet Rating).

    Institutional Ownership by Quarter for Meta Platforms (NASDAQ:META)

    Receive News & Ratings for Meta Platforms Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Meta Platforms and related companies with MarketBeat.com’s FREE daily email newsletter.

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    ABMN Staff

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  • Meta Makes Verification Available For US Users | Entrepreneur

    Meta Makes Verification Available For US Users | Entrepreneur

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    Meta has begun testing a paid verification option for Facebook and Instagram users in the US. This follows a successful trial in Australia and New Zealand, with plans for a gradual rollout to more American users in the coming weeks.

    Starting at $11.99 per month for web users and $14.99 monthly for mobile users, the goal of Meta Verified is to increase authenticity and security on both platforms. CNN notes users must provide a government ID matching their profile name and picture and be at least 18 to get a blue badge.

    The subscription bundle offers account protection, support, and increased visibility on Instagram and Facebook. With this move, Meta joins the ranks of other platforms with subscription models, such as Discord, Reddit, YouTube, and Twitter Blue. The social media giant seeks to diversify its revenue streams amid challenges facing its core ad sales business.

    Meta’s long-term goal for the subscription service is to provide value to creators, businesses, and the community. The subscription service also offers proactive monitoring for impersonation accounts and continuous monitoring for reported violations.

    Per Meta’s post about the program, Users can visit Mark Zuckerberg‘s Meta Channel on Instagram for more information about Meta Verified.

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    Steve Huff

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  • Meta launches paid verification subscription service in U.S.

    Meta launches paid verification subscription service in U.S.

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    Meta to launch paid verification service


    Meta to launch paid verification service on Facebook and Instagram, following Twitter’s lead

    04:42

    Meta, the parent company of Facebook and Instagram, launched a paid subscription service in the U.S. on Friday — allowing users on both platforms to pay for verification.

    CEO Mark Zuckerberg made the announcement on his “Meta Channel,” which is one of the latest features the company has rolled out for creators to “directly reach their audience and form deeper connections with their communities,” the company said. 

    Meta Verified is only available to personal accounts and will cost $14.99 per month if purchased on an iOS or Android device, and $11.99 per month if purchased on the web.   

    “Meta Verified is rolling out in the U.S. today,” Zuckerberg said on his Meta Channel. “You can get a badge, proactive impersonation protection, and direct access to customer support.”

    Zuckerberg’s decision to launch a subscription service for the social media platform comes after the Elon Musk-owned Twitter  relaunched its own subscription service, Twitter Blue, last December, after a previous launch attempt failed. 

    As of now, the company is currently making the service available to users in the U.S., Australia and New Zealand. However, people can join a waitlist to receive a notification when it will be available in their region.

    Users that currently have verified badges can also apply for the Meta Verified subscription, but the company said it does not plan to make any changes to those that have already been verified based on prior requirements.

    The launch of the service comes as Meta seeks to cut costs and improve financial performance following two rounds of layoffs, the latest of which occurred this week and saw the company lay off about 10,000 workers. Last November, about 11,000 Meta workers were also laid off

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  • Meta Employees Interrogate Mark Zuckerberg in Town Hall Meeting | Entrepreneur

    Meta Employees Interrogate Mark Zuckerberg in Town Hall Meeting | Entrepreneur

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    Meta boss Mark Zuckerberg faced thousands of anxious employees in an all-staff Town Hall meeting this morning, just two days after announcing that the company would eliminate 10,000 jobs.

    According to The Washington Post, which received a transcript of the event, Zuckerberg took questions and tried to explain Meta’s reorganization and restructuring plan.

    One employee asked how they could trust him only four months after last November’s bloodbath when Meta laid off roughly 11,000 workers, 13% of its workforce. At that time, Zuckerberg assured workers that there would be no more cuts in the “foreseeable future.”

    “I would guess that the way people would evaluate whether you trust me and want to work at this company is whether we are succeeding in making progress toward the overall stated goals,” Zuck said. “I think a lot of this is about the results we are able to deliver.”

    Zuckerberg explained that the company was responding to economic pressures that could linger for a while. “But I think it’s a fair question,” he said.

    Related: A Laid-Off Meta Employee Says She Wasn’t Given Anything to Do: ‘You Had to Fight to Find Work’

    Concerns about remote work and company culture

    Later, Zuckerberg was asked about the future of remote work at the company.

    He answered that it could continue to be “an ongoing conversation,” although he didn’t rule out possible return-to-office mandates. Some major companies, such as Amazon and Disney, require employees to return to the office full-time or part-time.

    Another employee asked how they were supposed to remain productive when the threat of layoffs were circling through the campus halls, according to WaPo.

    Zuckerberg conceded that this was an uncertain time but added, “it’s not like we can just pause working while we are figuring this out.”

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    Jonathan Small

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  • Laid Off Meta Employee Says the ‘Fake Work’ Stories Are True | Entrepreneur

    Laid Off Meta Employee Says the ‘Fake Work’ Stories Are True | Entrepreneur

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    At least one of the “fake work” stories might be true.

    One TikToker is claiming on the platform that as a former employee of Meta, she had to work really hard to — well, find work, per Insider.

    “They were just like hoarding us, like Pokemon cards,” said Britney Levy in the video. “You had to fight to find work.”

    @clearlythere #stitch with @roilysm #meta #metalayoffs #tech #techtok #techlayoffs #businessinsider #news #google #work #career #metaseverance #fyp #business ♬ original sound – Brit

    Meta, like other tech companies, went on a hiring bonanza during the pandemic, as it faced enormous demand for its products and services while people were stuck inside.

    Meta said it had 44,942 employees on December 31, 2019. By the end of 2021, the company listed 71,970 employees in its annual report and wrote it “expect[ed] headcount growth to continue for the foreseeable future.”

    But, after the Federal Reserve raised interest rates and after consumer habits changed, Meta, and similar companies, including Amazon and Google, faced a hard landing – and layoffs.

    Related: More Than 1,600 Tech Workers Are Being Laid Off A Day On Average In 2023, According to a New Report

    Meta then said that 2023 was going to be a “year of efficiency” after laying off 11,000 people in November. The company announced more layoffs this week that will affect another 10,000 people.

    At an event earlier this month, Keith Rabois, a general partner at Founders Fund, added to the criticism that Meta was overstaffed.

    “There’s nothing for these people to do — they’re really — it’s all fake work,” he said.

    As Insider previously reported, after being laid off in 2022, Levy declined to sign the severance agreement because she wanted to be able to discuss her experience with the company. (The outlet verified her job status and layoff.)

    Levy, 35, was hired through Meta’s “Sourcer Development Program,” which attempted to recruit workers from underrepresented backgrounds. Levy, who is Mexican-American said after being hired she was given no work to do. She was let go in the first round of layoffs in November.

    Related: ‘Fake Work’ Was ‘Exposed’ By Layoffs At Google And Meta, Says Former PayPal Executive

    “I was basically set up for failure,” she told the outlet.

    “We were just sitting there,” she added in the video. “It kind of seemed that Meta was hiring people so other companies couldn’t have us.”

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    Gabrielle Bienasz

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  • Mark Zuckerberg Worried Facebook Listening To Him After Being Pushed Shirt That Says ‘I Just Laid Off 10,000 Employees’

    Mark Zuckerberg Worried Facebook Listening To Him After Being Pushed Shirt That Says ‘I Just Laid Off 10,000 Employees’

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    PALO ALTO, CA—Noting the eerie feeling of being surveilled, Meta CEO Mark Zuckerberg reportedly expressed concern Tuesday that Facebook was listening to him after he received a targeted ad for a shirt that read “I Just Laid Off 10,000 Employees.” “How could it even know I just said that? It’s got to be using my goddamn microphone,” said Zuckerberg, adding that he had all his privacy settings turned on, and yet Facebook was pushing this item perfectly suited to his tastes. “It must have been listening to the party I was having to celebrate the layoffs. Sheesh, I’ve got to delete my cookies more often. It’s so invasive to feel tracked like this. It’s a little dystopian how it just showed me a shirt that says ‘I went to HARVARD and destroyed my FRIENDSHIP and love hunting with SPEARS.’” At press time, Zuckerberg confirmed he had bought the shirt from the advertisement.

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  • Meta is laying off 10,000 more workers as part of

    Meta is laying off 10,000 more workers as part of

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    Meta to cut thousands of jobs


    Meta to cut thousands of jobs in upcoming layoffs, after suggesting no more

    03:33

    Meta Chief Executive Officer Mark Zuckerberg on Tuesday said the company is laying off an additional 10,000 workers to hedge against economic instability that could persist for “many years.”

    The move is part of a number of steps, including slowing hiring and canceling some projects, that Meta is taking to cut costs and improve financial performance during what Zuckerberg dubbed its “Year of Efficiency.” 

    The layoffs will be conducted “over the next couple of months,” Zuckerberg said in a memo to employees. 

    Recruiting team members will know by tomorrow whether or not they still have jobs. Meta, the parent company of Facebook and Instagram, will announce layoffs in its tech groups in late April, and across its business teams toward the end of May. The company will also scrap plans to hire an additional 5,000 workers to fill open roles. 

    “This will be tough and there’s no way around that,” Zuckerberg said in his address to workers. 

    “Removing jobs” is one of the ways Meta is executing on its goal of becoming more efficient, according to the memo. 

    The new round of layoffs comes after the company cut about 11,000 jobs — or 13% of Meta’s workforce — in November.

    Zuckerberg said that the earlier round of layoffs has helped the company “execute its highest priorities faster” as a leaner organization.

    At its peak in 2022, Meta employed 87,000 full-time workers.


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  • Silicon Valley Confronts the End of Growth. It’s a New Era for Tech Stocks.

    Silicon Valley Confronts the End of Growth. It’s a New Era for Tech Stocks.

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    Silicon Valley could use a reboot. The biggest players aren’t growing, and more than a few are seeing sharp revenue declines. Regulators seem opposed to every proposed merger, while legislators push for new rules to crack down on the internet giants. The Justice Department just can’t stop filing antitrust suits against Google. The initial public offering market is closed. Venture-capital investments are plunging, along with valuations of prepublic companies. Maybe they should try turning the whole thing on and off.

    The only strategy that seems to be working is to lay people off. Tech CEOs suddenly are channeling Marie Kondo, tidying up and keeping only the people and projects that “spark joy,” or at least support decent operating margins. Layoffs.fyi reports that tech companies have laid off more than 122,000 people already this year.

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  • The Pros and Cons of Big Brands Launching Web3 Projects | Entrepreneur

    The Pros and Cons of Big Brands Launching Web3 Projects | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If you’ve been watching blockchain news, you likely saw the troubling figure that Web3 startup funding fell 74% in 2022. Yet megabrands such as Starbucks, Mastercard and Nike, all launching Web3 or Metaverse projects this year paints a conflicting image of Web3’s current status and future development.

    This may seem like deja-vu from the big-brand NFT craze in 2021 and early 2022, but these projects seem to be much more grounded in providing tangible value instead of manufacturing exclusivity. Major mainstream companies clearly see value in certain aspects of Web3, but with larger infrastructure still a work in progress, is this grand re-entry premature?

    Related: 4 Things to Consider Before Investing in Web3

    Big brand benevolence

    Large companies debuting and re-entering Web3 benefit the space by granting an undeniable cachet to the industry as a whole. Where blockchain-based developments have often been marked as gimmicks or marketing ploys, lower-profile launches show that Web3 technology can function with less fanfare by putting concrete user benefits at the forefront of product launches.

    A stamp of approval from companies outside the blockchain realm, and even the tech bubble, can solidify which Web3 use cases are viable. Gamer outrage drove gaming companies to backpedal on NFT integrations seriously, but we’ve seen virtually no public backlash to Starbucks transitioning its already incredibly successful rewards program to an NFT-based framework. Yes, it is essentially the same technology, but utilized in a way that enhances a service that non-crypto users already love instead of a useless distraction from a main product.

    Another key point of difference this time is the focus on the more tech and innovation-centered aspects of Web3, such as augmented reality (AR). Yes, Meta has long been the leader in this space with Oculus, but the details surrounding Apple launching its own “mixed reality” headset this spring gives a new level of prestige to AR progress. This news creates an even bigger splash considering Apple’s reputation for observing tech developments from the sidelines until it’s a clear win.

    If we’re measuring Web3 progress by a constant influx of VC dollars, then the state of the industry doesn’t look rosy in the short term. But the clear sustained interest from giants outside the industry shows that there is a solid curiosity and desire for Web3 technology. That being said, with big players entering the fold, there is room to question if Web3’s skeletal infrastructure and limited interoperability are ready for it.

    Related: Venture Capitalists are Pouring Money into Web3. Here’s Why.

    Too much too soon?

    A vote of confidence is vital for any industry’s growth, especially for smaller projects looking to get off the ground and build something revolutionary. But outside support doesn’t always guarantee that a platform or industry can succeed in the long term. Just look at the number of companies with an outpost in the primordial Metaverse project Second Life.

    Large-scale Metaverse infrastructures are still more of a sketch than a completed portrait. While big brand investment certainly fuels more frameworks to exist, it might not always have the best interests of a community at heart. What could end up happening is brands painting themselves into a corner, developing siloed Web3 worlds that only serve their customers and mimic the type of “walled garden” ecosystem that describes many internet platforms now.

    Companies that ignore the need for community-based frameworks do so to their detriment. Silicon Valley’s infamous “move fast and break things” mentality somewhat backfired on Web3 projects that didn’t realize you need an infrastructure to exist first before breaking it.

    By creating ecosystems that are not conducive to community growth, Web3 development and infrastructures become a black box, inaccessible to other projects or developers. This is where projects such as SendingNetwork, a software development kit (SDK) with tools that Web3 developers of all sizes can use to create community-centric platforms, step in to form an interconnected digital landscape. These sector-crossing initiatives are just as vital to creating a common Web3 foundation with projects trying to form the industry in its image.

    Related: They Say Web3 Is the Future of the Internet. But How?

    Making sure Web3 infrastructures are solid before courting larger projects can also help secure their interest in the long term. Companies of a certain stature have no qualms about experimenting in a new, potentially revenue-driving space, only to retreat after one bad quarter or plateaued growth. We’ve seen this happen in the blockchain space before, so it would be wise not to retread this path.

    Ultimately, there are clear benefits and drawbacks to megabrands hauling Web3 back into the mainstream. Where certain companies can lend legitimacy to the Web3 space, it’s important not to disregard the less glamorous yet vital strides smaller projects are taking to create common ground. Essentially, while brands invest in their projects, they should consider taking a big-picture approach to become fixtures in Web3 that bring in new communities outside their own corporatized space.

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    Ariel Shapira

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  • Supreme Court hears case that could reshape the

    Supreme Court hears case that could reshape the

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    Washington — Kati Morton was a reluctant adopter of YouTube.

    A therapist working toward her license in California, it was her then-boyfriend and now-husband who first suggested that Morton explore posting videos on the platform as a way to disseminate mental health information.

    The year was 2011, and Morton, like many others, thought YouTube primarily consisted of videos of cats playing the piano and make-up tutorials. But after seeing other content posted on the site, Morton decided to give it a shot.

    Her audience started small, with her videos garnering a handful of views. But in the more than a decade since then, Morton’s YouTube channel has grown to more than 1.2 million subscribers.

    Crucial to the growth of Morton’s audience is YouTube’s system for recommending content to users, which the company began building in 2008. It relies on a highly complex algorithm to predict what videos will interest viewers and keep them watching. Today, half of Morton’s views come from recommendations, she said.

    “If you could see the entire life of the channel, it was really, really slow and steady,” Morton told CBS News. “And then through recommendations, as well as collaborations, things have grown as you’re able to reach a broader audience and YouTube is better able to understand the content.”

    YouTube’s recommendations algorithm, and those used by platforms like TikTok, Facebook and Twitter, are now at the heart of a legal dispute that will go before the Supreme Court on Tuesday, in a case that involves the powerful legal shield that helped the internet grow.

    “We’re talking about rewriting the legal rules that govern the fundamental architecture of the internet,” Aaron Mackey, senior staff attorney at the Electronic Frontier Foundation, told CBS News of what’s at stake in the case, known as Gonzalez v. Google. 

    “A backbone of online activity”

    Section 230 of the Communications Decency Act immunizes internet companies from liability over content posted by third parties and allows platforms to remove content considered obscene or objectionable. The dispute before the Supreme Court marks the first time the court will consider the scope of the law, and the question before the justices is whether Section 230’s protections for platforms extend to targeted recommendations of information.

    The court fight arose after terrorist attacks in Paris in November 2015, when 129 people were murdered by ISIS members. Among the victims was 23-year-old Nohemi Gonzalez, an American college student studying abroad who was killed at a bistro in the city. 

    Gonzalez’s parents and other family members filed a civil lawsuit in 2016 against Google, which owns YouTube, alleging that the tech company aided and abetted ISIS in violation of a federal anti-terrorism statute by recommending videos posted by the terror group to users.

    Google moved to dismiss the complaint, claiming that they were immune from the claims under Section 230. A federal district court in California agreed and, regarding YouTube’s recommendations, found that Google was protected under the law because the videos at issue were produced by ISIS.

    The U.S. Court of Appeals for the 9th Circuit affirmed the district court’s ruling, and Gonzalez’s family asked the Supreme Court to weigh in. The high court said in October it would take up the dispute.

    The court fight has elicited input from a range of parties, many of which are backing Google in the case. Platforms like Twitter, Meta and Reddit — all of which rely on Section 230 and its protections — argue algorithmic recommendations allow them to organize the millions of pieces of third-party content that appear on their sites, enhancing the experience for users who would otherwise be forced to sift through a mammoth amount of posts, articles, photos and videos.

    “Given the sheer volume of content on the internet, efforts to organize, rank, and display content in ways that are useful and attractive to users are indispensable,” lawyers for Meta, the parent company of Facebook and Instagram, told the court.


    What is Section 230 and why do people want it repealed?

    12:55

    Even the company that operates online dating services Match and Tinder pointed to Section 230 as “vital” to its efforts to connect singles, as the law allows “its dating platforms to provide recommendations to its users for potential matches without having to fear overwhelming litigation.”

    But conservatives are using the case as a vehicle to rail against “Big Tech” firms and amplify claims that platforms censor content based on political ideology.

    Citing lower court decisions they believe has led to a “broad grant of immunity,” a group of Republican senators and House members told the Supreme Court that platforms “have not been shy about restricting access and removing content based on the politics of the speaker, an issue that has persistently arisen as Big Tech companies censor and remove content espousing conservative political views, despite the lack of immunity for such actions in the text of” Section 230.

    The case has presented the justices with a rare opportunity to hear directly from the co-authors of the legislation at issue. Ron Wyden, now a Democratic senator from Oregon, and Chris Cox, a former GOP congressman from California, crafted Section 230 in the House in 1996. The bipartisan pair filed a friend-of-the court brief explaining the plain meaning of their law and the policy balance they sought to strike.

    “Section 230 protects targeted recommendations to the same extent that it protects other forms of content curation and presentation,” they wrote. “Any other interpretation would subvert Section 230’s purpose of encouraging innovation in content moderation and presentation. The real-time transmission of user-generated content that Section 230 fosters has become a backbone of online activity, relied upon by innumerable internet users and platforms alike.”

    Google, they argued, is entitled to liability protection under Section 230, since the platform’s recommendation algorithm is merely responding to user preferences by pairing them with the types of content they seek. 

    “The algorithm functions in a way that is not meaningfully different from the many curatorial decisions that platforms have always made in deciding how to present third-party content,” Wyden and Cox said. 

    The battle also highlights competing views about the internet today and how Section 230 has shaped it. For tech companies, the law has laid the groundwork for new platforms to come online, an industry of online creators to form and free expression to flourish. For Gonzalez’s family and others, the algorithmic recommendations have proven deadly and harmful.

    Like the Gonzalezes, Tawainna Anderson, too, has fought to hold a social media platform responsible over content it recommends to users.

    Last May, Anderson sued TikTok and its parent company, China-based ByteDance, after her 10-year-old daughter Nylah died in late 2021 after trying to perform the dangerous “Blackout Challenge,” in which users are pushed to strangle themselves until they pass out and then share videos of the experience.

    The challenge, which went viral on TikTok, was recommended to Nylah through her account’s “For You” page, a curated feed of third-party content powered by TikTok’s algorithmic recommendation system.

    “They are actually feeding it to our children. They are sending them videos that they never even searched before,” Anderson told CBS News chief legal correspondent Jan Crawford. 

    Anderson’s lawsuit sought to hold TikTok accountable for deliberately funneling dangerous content to minors through the challenges and encouraging behavior that put their lives in danger. TikTok asked the federal district court in Pennsylvania to dismiss the suit, invoking Section 230. 

    U.S. District Judge Paul Diamond tossed out the case in October, writing that the law shielded TikTok from liability because it was promoting the work of others. But he acknowledged in a brief order that TikTok made the Blackout Challenge “readily available on their site” and said its algorithm “was a way to bring the challenge to the attention of those likely to be most interested in it.”

    “The wisdom of conferring such immunity is something properly taken up with Congress, not the courts,” Diamond wrote.

    Mackey, of the Electronic Frontier Foundation, noted that if people disagree with the reach of Section 230 as the courts have interpreted it, the right remedy is for Congress, not the Supreme Court, to rewrite the law.

    “When they passed it, they set this balance and said not that they didn’t believe there wouldn’t be harmful content, but they believed on balance the creation of opportunities and forums for people to speak, for the growth of the internet and development of a tool that became central to our lives, commerce, political expression — that was what they valued more,” Mackey said. “Congress is free to rewrite that balance.”

    A new creator economy

    In the 27 years since Section 230 became law, the explosive growth of the internet has fueled a multi-billion-dollar industry of independent online creators who rely on large tech platforms to reach new audiences and monetize their content.

    In Morton’s case, her YouTube channel has allowed her to expand beyond her office in Santa Monica, California, and reach patients around the country, including in areas where mental health resources may be scarce.

    “The ability for me to get over a million views on YouTube means that I’m able to reach so many more people, and mental health information isn’t held behind a paywall,” she said.

    Alex Su, a lawyer by training who runs the TikTok account LegalTechBro, first began sharing content on LinkedIn in 2016 as a way to drive awareness of his employer, a technology company. After building up a following of lawyers and others in the legal industry on LinkedIn, Su began experimenting with TikTok in 2020.

    His TikTok videos, which touch on insider experiences of working at a law firm, resonated with other lawyers and people with ties to the profession. He said LinkedIn’s recommendation system has been instrumental in helping Su reach his target audience and market his company’s services.

    “These algorithms let me go viral among people who can relate to my jokes,” he told CBS News. “If I put this type of content in front of a general audience, they probably wouldn’t find it as funny.”

    Internet companies and supporters of Section 230 note the law has allowed for new and emerging companies to grow into industry leaders without incurring significant litigation costs fighting frivolous claims.

    Su, an early adopter of LinkedIn and TikTok for those in the legal field, noted that creators are often quick to take advantage of new platforms, where they can reach new audiences.

    “I think it’s no accident that there are these shifts where new entrants come in and you can take advantage of it as a content creator because then you can go viral on that platform with a new audience quickly,” he said. “Without those different platforms, I would not have been able to grow in the way that I did.”

    Few clues from the court

    The Supreme Court has given little indication of how it may approach Section 230. Only Justice Clarence Thomas has written about lower courts’ interpretations of the legal shield.

    “Courts have long emphasized non-textual arguments when interpreting [Section] 230, leaving questionable precedent in their wake,” Thomas wrote in a 2020 statement urging the court to consider whether the law’s text “aligns with the current state of immunity enjoyed by internet platforms.”

    The Supreme Court could issue a ruling that affirms how Section 230 has been interpreted by lower courts, or narrow the law’s immunity.

    But internet companies warned the court that if it limits the scope of Section 230, it could drastically change how they approach content posted to their sites. With a greater risk of costly litigation with fewer protections, companies may be more cautious about letting content appear on their sites that may be problematic, and only allow content that has been vetted and poses little legal risk.

    “If you’re concerned about censorship, the last thing you want is a legal regime that is going to punish platforms for keeping things online,” Mackey said. “It’s going to be increased censorship, more material will be taken down, a lot won’t make it alone in the first place.” 

    A decision from the Supreme Court is expected by the summer.

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  • Walmart, Home Depot, Meta, DocuSign, Medtronic, and More Stock Market Movers

    Walmart, Home Depot, Meta, DocuSign, Medtronic, and More Stock Market Movers

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  • Meta to launch paid verification service on Facebook and Instagram, following Twitter’s lead

    Meta to launch paid verification service on Facebook and Instagram, following Twitter’s lead

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    Meta to launch paid verification service on Facebook and Instagram, following Twitter’s lead – CBS News


    Watch CBS News



    Meta will begin testing its new subscription service later this week, which will offer a blue badge to verified accounts on its Facebook and Instagram platforms. Louise Matsakis, a technology reporter for Semafor, joins CBS News to discuss what this new subscription plan entails.

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  • Supreme Court to hear case that could reshape the

    Supreme Court to hear case that could reshape the

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    Washington — Kati Morton was a reluctant adopter of YouTube.

    A therapist working toward her license in California, it was her then-boyfriend, now-husband, who first suggested that Morton explore posting videos on the platform as a way to disseminate mental health information.

    The year was 2011, and Morton, like many others, thought YouTube primarily consisted of videos of cats playing the piano and make-up tutorials. But after seeing other content posted on the site, Morton decided to give it a shot.

    Her audience started small, with her videos garnering a handful of views. But in the more than a decade since then, Morton’s YouTube channel has grown to more than 1.2 million subscribers.

    Crucial to the growth of Morton’s audience is YouTube’s system for recommending content to users, which the company began building in 2008. It relies on a highly complex algorithm to predict what videos will interest viewers and keep them watching. Today, half of Morton’s views come from recommendations, she said.

    “If you could see the entire life of the channel, it was really, really slow and steady,” Morton told CBS News. “And then through recommendations, as well as collaborations, things have grown as you’re able to reach a broader audience and YouTube is better able to understand the content.”

    YouTube’s recommendations algorithm, and those used by platforms like TikTok, Facebook and Twitter, are now at the heart of a legal dispute that will go before the Supreme Court on Tuesday, in a case that involves the powerful legal shield that helped the internet grow.

    “We’re talking about rewriting the legal rules that govern the fundamental architecture of the internet,” Aaron Mackey, senior staff attorney at the Electronic Frontier Foundation, told CBS News of what’s at stake in the case, known as Google v. Gonzalez. 

    “A backbone of online activity”

    Section 230 of the Communications Decency Act immunizes internet companies from liability over content posted by third parties and allows platforms to remove content considered obscene or objectionable. The dispute before the Supreme Court marks the first time the court will consider the scope of the law, and the question before the justices is whether Section 230’s protections for platforms extend to targeted recommendations of information.

    The court fight arose after terrorist attacks in Paris in November 2015, when 129 people were murdered by ISIS members. Among the victims was 23-year-old Nohemi Gonzalez, an American college student studying abroad who was killed at a bistro in the city. 

    Gonzalez’s parents and other family members filed a civil lawsuit in 2016 against Google, which owns YouTube, alleging that the tech company aided and abetted ISIS in violation of a federal anti-terrorism statute by recommending videos posted by the terror group to users.

    Google moved to dismiss the complaint, claiming that they were immune from the claims under Section 230. A federal district court in California agreed and, regarding YouTube’s recommendations, found that Google was protected under the law because the videos at issue were produced by ISIS.

    The U.S. Court of Appeals for the 9th Circuit affirmed the district court’s ruling, and Gonzalez’s family asked the Supreme Court to weigh in. The high court said in October it would take up the dispute.

    The court fight has elicited input from a range of parties, many of which are backing Google in the case. Platforms like Twitter, Meta and Reddit — all of which rely on Section 230 and its protections — argue algorithmic recommendations allow them to organize the millions of pieces of third-party content that appear on their sites, enhancing the experience for users who would otherwise be forced to sift through a mammoth amount of posts, articles, photos and videos.

    “Given the sheer volume of content on the internet, efforts to organize, rank, and display content in ways that are useful and attractive to users are indispensable,” lawyers for Meta, the parent company of Facebook and Instagram, told the court.


    What is Section 230 and why do people want it repealed?

    12:55

    Even the company that operates online dating services Match and Tinder pointed to Section 230 as “vital” to its efforts to connect singles, as the law allows “its dating platforms to provide recommendations to its users for potential matches without having to fear overwhelming litigation.”

    But conservatives are using the case as a vehicle to rail against “Big Tech” firms and amplify claims that platforms censor content based on political ideology.

    Citing lower court decisions they believe has led to a “broad grant of immunity,” a group of Republican senators and House members told the Supreme Court that platforms “have not been shy about restricting access and removing content based on the politics of the speaker, an issue that has persistently arisen as Big Tech companies censor and remove content espousing conservative political views, despite the lack of immunity for such actions in the text of” Section 230.

    The case has presented the justices with a rare opportunity to hear directly from the co-authors of the legislation at issue. Ron Wyden, now a Democratic senator from Oregon, and Chris Cox, a former GOP congressman from California, crafted Section 230 in the House in 1996. The bipartisan pair filed a friend-of-the court brief explaining the plain meaning of their law and the policy balance they sought to strike.

    “Section 230 protects targeted recommendations to the same extent that it protects other forms of content curation and presentation,” they wrote. “Any other interpretation would subvert Section 230’s purpose of encouraging innovation in content moderation and presentation. The real-time transmission of user-generated content that Section 230 fosters has become a backbone of online activity, relied upon by innumerable internet users and platforms alike.”

    Google, they argued, is entitled to liability protection under Section 230, since the platform’s recommendation algorithm is merely responding to user preferences by pairing them with the types of content they seek. 

    “The algorithm functions in a way that is not meaningfully different from the many curatorial decisions that platforms have always made in deciding how to present third-party content,” Wyden and Cox said. 

    The battle also highlights competing views about the internet today and how Section 230 has shaped it. For tech companies, the law has laid the groundwork for new platforms to come online, an industry of online creators to form and free expression to flourish. For Gonzalez’s family and others, the algorithmic recommendations have proven deadly and harmful.

    Like the Gonzalezes, Taiwanna Anderson, too, has fought to hold a social media platform responsible over content it recommends to users.

    Last May, Anderson sued TikTok and its parent company, China-based ByteDance, after her 10-year-old daughter Nylah died in late 2021 after trying to perform the dangerous “Blackout Challenge,” in which users are pushed to strangle themselves until they pass out and then share videos of the experience.

    The challenge, which went viral on TikTok, was recommended to Nylah through her account’s “For You” page, a curated feed of third-party content powered by TikTok’s algorithmic recommendation system.

    Anderson’s lawsuit sought to hold TikTok accountable for deliberately funneling dangerous content to minors through the challenges and encouraging behavior that put their lives in danger. TikTok asked the federal district court in Pennsylvania to dismiss the suit, invoking Section 230. 

    U.S. District Judge Paul Diamond tossed out the case in October, writing that the law shielded TikTok from liability because it was promoting the work of others. But he acknowledged in a brief order that TikTok made the Blackout Challenge “readily available on their site” and said its algorithm “was a way to bring the challenge to the attention of those likely to be most interested in it.”

    “The wisdom of conferring such immunity is something properly taken up with Congress, not the courts,” Diamond wrote.

    Mackey, of the Electronic Frontier Foundation, noted that if people disagree with the reach of Section 230 as the courts have interpreted it, the right remedy is for Congress, not the Supreme Court, to rewrite the law.

    “When they passed it, they set this balance and said not that they didn’t believe there wouldn’t be harmful content, but they believed on balance the creation of opportunities and forums for people to speak, for the growth of the internet and development of a tool that became central to our lives, commerce, political expression — that was what they valued more,” Mackey said. “Congress is free to rewrite that balance.”

    A new creator economy

    In the 27 years since Section 230 became law, the explosive growth of the internet has fueled a multi-billion-dollar industry of independent online creators who rely on large tech platforms to reach new audiences and monetize their content.

    In Morton’s case, her YouTube channel has allowed her to expand beyond her office in Santa Monica, California, and reach patients around the country, including in areas where mental health resources may be scarce.

    “The ability for me to get over a million views on YouTube means that I’m able to reach so many more people, and mental health information isn’t held behind a paywall,” she said.

    Alex Su, a lawyer by training who runs the TikTok account LegalTechBro, first began sharing content on LinkedIn in 2016 as a way to drive awareness of his employer, a technology company. After building up a following of lawyers and others in the legal industry on LinkedIn, Su began experimenting with TikTok in 2020.

    His TikTok videos, which touch on insider experiences of working at a law firm, resonated with other lawyers and people with ties to the profession. He said LinkedIn’s recommendation system has been instrumental in helping Su reach his target audience and market his company’s services.

    “These algorithms let me go viral among people who can relate to my jokes,” he told CBS News. “If I put this type of content in front of a general audience, they probably wouldn’t find it as funny.”

    Internet companies and supporters of Section 230 note the law has allowed for new and emerging companies to grow into industry leaders without incurring significant litigation costs fighting frivolous claims.

    Su, an early adopter of LinkedIn and TikTok for those in the legal field, noted that creators are often quick to take advantage of new platforms, where they can reach new audiences.

    “I think it’s no accident that there are these shifts where new entrants come in and you can take advantage of it as a content creator because then you can go viral on that platform with a new audience quickly,” he said. “Without those different platforms, I would not have been able to grow in the way that I did.”

    Few clues from the court

    The Supreme Court has given little indication of how it may approach Section 230. Only Justice Clarence Thomas has written about lower courts’ interpretations of the legal shield.

    “Courts have long emphasized non-textual arguments when interpreting [Section] 230, leaving questionable precedent in their wake,” Thomas wrote in a 2020 statement urging the court to consider whether the law’s text “aligns with the current state of immunity enjoyed by internet platforms.”

    The Supreme Court could issue a ruling that affirms how Section 230 has been interpreted by lower courts, or narrow the law’s immunity.

    But internet companies warned the court that if it limits the scope of Section 230, it could drastically change how they approach content posted to their sites. With a greater risk of costly litigation with fewer protections, companies may be more cautious about letting content appear on their sites that may be problematic, and only allow content that has been vetted and poses little legal risk.

    “If you’re concerned about censorship, the last thing you want is a legal regime that is going to punish platforms for keeping things online,” Mackey said. “It’s going to be increased censorship, more material will be taken down, a lot won’t make it alone in the first place.” 

    A decision from the Supreme Court is expected by the summer.

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  • Meta Employees Are Being ‘Paid to Do Nothing’: Report

    Meta Employees Are Being ‘Paid to Do Nothing’: Report

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    It’s misery at Meta.

    According to the New York Post, cost-cutting measures and mass layoffs have left employees feeling unliked and demotivated.

    A Financial Times report reveals that the malaise is being felt by workers in the trenches all the way up to senior management. What was promised to be a “year of efficiency” by CEO Mark Zuckerberg has been a year of employees sitting on their hands.

    Project budget approvals have been delayed, leading to a halt in work, according to FT. The outlet quoted insiders who say “zero work” is getting done, including its vital metaverse and advertising initiatives.

    “Honestly, it’s still a mess,” one Meta employee said. “The year of efficiency is kicking off with a bunch of people getting paid to do nothing.”

    Related: Meta Stock Jumps 1 Percent After False Report

    Last year, Meta’s stock fell by 72% as its metaverse push landed with a virtual thud, losing an estimated $700 billion. After laying off around 11,000 employees, Zuckerberg admitted to staffers that Meta over-invested after the pandemic led to a temporary surge in online activity and told employees, “I got this wrong, and I take responsibility for that.”

    Zuck and the Meta gang are not alone. Google, Amazon, Twitter, and Microsoft are among the other tech giants forced to lay off thousands in 2022.

    Related: 23 Weird Things You Didn’t Know About Mark Zuckerberg

    On an earnings call last week, Zuckerberg said he would restructure the company to find efficiencies. “We’re working on flattening our org structure and removing some layers of middle management to make decisions faster, as well as deploying AI tools to help our engineers be more productive,” Zuckerberg said, adding that he will be quick to shut down projects that are not performing or no longer seen as crucial.

    That oughta boost morale.

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  • Meta employees are reportedly bracing for more layoffs amid delays to finalized budgets: ‘It’s still a mess’

    Meta employees are reportedly bracing for more layoffs amid delays to finalized budgets: ‘It’s still a mess’

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    Facebook parent Meta conducted its biggest-ever layoffs last November, shedding about 11,000 workers. But more jobs, it appears, are about to be axed.

    CEO Mark Zuckerberg noted in a Facebook post on Feb. 1, “We closed last year with some difficult layoffs and restructuring some teams. When we did this, I said clearly that this was the beginning of our focus on efficiency and not the end.” During an earnings call that same day, he announced 2023 will be Meta’s “year of efficiency.”

    While Meta workers wonder who will be deemed inefficient, the company has delayed finalizing multiple teams’ budgets, according to the Financial Times. Employees who spoke to the British paper on condition of anonymity said morale at the company was low and little work was getting done on some teams as they await abnormally slow budget decisions. 

    Meta declined to comment when contacted by Fortune.

    “Honestly, it’s still a mess,” one employee told the FT. “The year of efficiency is kicking off with a bunch of people getting paid to do nothing.”

    Other workers told the paper the next job cuts are expected next month.

    Middle managers have reason to be nervous.

    ‘More proactive about cutting projects’

    Zuckerberg wrote in his Facebook post, “We’re working on flattening our org structure and removing some layers of middle management to make decisions faster, as well as deploying AI tools to help our engineers be more productive. As part of this, we’re going to be more proactive about cutting projects that aren’t performing or may no longer be as crucial, but my main focus is on increasing the efficiency of how we execute our top priorities.”

    One of those priorities is the metaverse, a largely unrealized virtual world that has underwhelmed users and could take years to become profitable, if it ever does. The company’s metaverse division, Reality Labs, notched a loss of $13.7 billion for 2022, up from a $10.2 billion loss in 2021. 

    Investors have tried pressuring Zuckerberg to scale back the metaverse investments, to no avail. 

    In December, John Carmack, a virtual reality pioneer, left his high-level consulting role at Meta, where he worked on the metaverse. He tweeted on the way out, “I have always been pretty frustrated with how things get done at FB/Meta.  Everything necessary for spectacular success is right there, but it doesn’t get put together effectively.”

    Slow going with the metaverse and three consecutive quarters of year-over-year revenue declines, however, are not stopping stock buybacks at Meta. In its latest earnings statement, Meta said it had increased its share repurchase authorization by $40 billion, noting that last year it bought back about $28 billion.

    Many tech companies that over-hired during the pandemic, as demand surged for the services, have conducted large layoffs in recent months, leading to a sense of clashing headlines as the latest U.S. jobs report shows the lowest unemployment in 50 years.

    Learn how to navigate and strengthen trust in your business with The Trust Factor, a weekly newsletter examining what leaders need to succeed. Sign up here.

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    Steve Mollman

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  • Here are the latest tech layoffs as the industry shudders

    Here are the latest tech layoffs as the industry shudders

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    The high-flying tech industry is facing a reckoning as the economy slows and customers pull back on spending.

    In the past month alone, tech companies have cut nearly 60,000 jobs, reversing a hiring spree that surged during the pandemic as millions of Americans moved their lives online. IBM was one of the latest to slash its headcount, announcing 3,900 layoffs in January, or less than 2% of its global workforce. 

    Even with the surge in layoffs, most tech companies are still vastly larger than they were three years ago. But industry analysts expect further industry cuts in 2023 as the Federal Reserve continues to increase interest rates as it hits the brakes on economic growth. 

    This year, “a major theme will be tech layoffs as Silicon Valley, after a decade of hyper growth, now comes to the reality of cost-cutting mode,” analysts at Wedbush said in a research note Friday.

    As for what that means for tech workers, it’s too soon to tell, experts say. Despite the cascade of layoff announcements, employment in the information sector rose through most of last year, dropping only in December. That suggests demand for talent remains strong enough that many laid-off tech employees will likely be able to find new jobs.

    “While layoffs from high-profile firms make the headlines, plenty of firms are desperate for more workers, especially tech workers. Those workers are in high demand from the auto industry to the Department of Veterans Affairs to not-for-profits,” said Robert Frick, corporate economist at Navy Federal Credit Union.

    “The labor market is still so tight that many tech workers, and workers with other skills, are snapped up well before they need to collect an unemployment check. And they are more likely to be snapped up by smaller firms, which have a much greater demand for workers than major corporations.

    The tech downturn is an anomaly amid a job market that remains the tightest in decades and has allowed many workers to command higher pay. Across the economy, announced layoffs last year fell to their second-lowest in 30 years of tracking by outplacement firm Challenger, Gray & Christmas, second only to 2021.

    But even as overall layoffs fell, tech layoffs rose, with a record 1 in 4 layoffs last year taking place in the tech sector.

    Here are the largest tech companies to announce cuts since 2022.

    Alphabet   

    The Google parent said on January 20 that it would let go of 12,000 workers, or about 6% of its 186,000-strong global workforce. The cuts apply “across Alphabet — product areas, functions, levels and regions,” CEO Sundar Pichai said.

    Pichai told employees that the Silicon Valley company simply hired too fast during the pandemic. 

    “Over the past two years we’ve seen periods of dramatic growth,” Pichai wrote in an email that was also posted on Alphabet’s corporate blog. “To match and fuel that growth, we hired for a different economic reality than the one we face today.”

    Amazon

    The e-commerce company is moving to cut about 18,000 positions, a downshift that began in November and that will continue into this year. That’s just a fraction of its 1.5 million-strong global workforce. 

    While the vast majority of the company’s employees work in its vast warehouse and logistics operation — which doubled in size during the pandemic — the cuts mostly affect white-collar employees in some of the company’s less profitable sectors, including the division responsible for its voice assistant, Alexa.

    Carvana

    The online car seller cut about 2,500 workers in May 2022, or 12% of its workforce. The company was widely criticized for its handling of the layoffs, many of which were done via Zoom and email. 

    The Phoenix-based company, which delivers new and used cars to buyers, blamed the cuts on an “automotive recession.”

    Coinbase

    The cryptocurrency trading platform cut roughly 20% of its workforce, or about 950 jobs, in January. It’s the second round of layoffs in less than a year, with 1,100 workers losing their jobs in June.

    Dell

    The computer company in February announced it would slash 5% of its workforce due to a “challenging global economic environment.” The Texas-based company has about 133,000 employees, according to its most recent annual report, putting the layoffs on track to eliminate about 6,600 jobs.

    eBay

    The online marketplace said in February it would cut 500 jobs, or about 4% of its global workforce, according to an internal email included with a securities filing.

    The layoffs allow the company “to invest and create new roles in high-potential areas,” CEO Jamie Iannone said in the message. The will also “[simplify] our structure to make decisions more effectively and with more speed,” he said.

    IBM

    The company plans to cut about 3,900 workers, its chief financial officer told Bloomberg in January. The cuts amount to about 1.5% of the company’s global workforce, and come even as IBM posted better-than-expected revenue for the most recent quarter.

    The Armonk, New York-based firm will continue hiring in what its financial officer called “higher-growth areas.” IBM last year said it would invest tens of billions of dollars across New York’s Hudson Valley to spur semiconductor manufacturing.

    Lyft

    The ride-hailing service said in November it was cutting 13% of its workforce, almost 700 employees. The layoffs affect its corporate employees, since Lyft’s army of drivers are considered independent businesses, not employees of the transportation company. 

    Meta

    The parent company of Facebook in November laid off 11,000 people, about 13% of its workforce. Meta has struggled more than many tech companies this year; its user base has shrunk, while CEO Mark Zuckerberg has put billions of dollars into building what he calls the “metaverse,” to the consternation of its investors. The company’s stock has lost two-thirds of its value since peaking in August 2021.

    Microsoft

    The software company in January said it would cut about 10,000 jobs, almost 5% of its workforce, as it refocuses its strategy on artificial intelligence and away from hardware. In the two years ending in June 2022, Microsoft had expanded from 163,000 workers to 221,000.

    PayPal

    The digital payments company said in January it was cutting 2,000 jobs, or about 7% of its workforce, as it contends with what it called “the challenging macro-economic environment.”

    The San Jose, California-based company is the parent of PayPal is the parent of payment apps Venmo and Xoom and the coupon service Honey, among other brands. PayPal said the cuts would affect different brands unequally, although it did not specify further.

    Robinhood

    The company, whose app helped attract a new generation of investors to the market, announced in August that it would reduce its headcount by 23%, or approximately 780 people. That’s the second round of recent layoffs for the company, which last year cut 9% of its workforce.

    Salesforce

    The company cut 10% of its workforce, or about 7,300 employees, in January. It also said it was closing some offices, citing a “challenging” environment and lower customer spending. 

    Snap

    The parent company of social media platform Snapchat said in August that it was letting go of 20% of its staff. Snap’s staff has grown to more than 5,600 employees in recent years, meaning that, even after laying off more than 1,000 people, Snap’s staff would be larger than it was a year earlier.

    Spotify

    The music streaming service said in January it was cutting 6% of its workforce, or roughly 580 jobs, as part of a push to make the company more efficient. In 2022, Spotify’s operating costs grew twice as fast as its revenue, CEO Daniel Ek said, a pace he called “unsustainable.”

    “We still spend far too much time syncing on slightly different strategies, which slows us down,” CEO Daniel Elk said in a January 23 letter to employees posted on the company’s site. “And in a challenging economic environment, efficiency takes on greater importance.”

    Stripe

    The payment processor announced layoffs of roughly 1,000 workers in November,  amounting to 14% of its workforce. In an email to employees posted on Stripe’s website, CEO Patrick Collison said the company expected “leaner times” amid worsening economic conditions.

    Twitter

    About half of the social media platform’s staff of 7,500 was let go after the billionaire CEO of Tesla, Elon Musk, acquired the service in October. An unknown number have left, with some objecting to the new ownership and Musk’s demand for an “extremely hardcore” attitude.

    Wayfair

    The online shopping company announced in January that it would cut 1,750 workers, or about 10% of its global employees, as it adjusts to falling consumer demand after the home-renovation boom of the pandemic. It’s the second round of layoffs for the Boston-based company, which cut 870 employees in August.

    CEO Niraj Shah said the company “simply grew too big.”

    “In hindsight, similar to our technology peers, we scaled our spend too quickly over the last few years,” Shah said in a statement.

    Zoom

    The video-conferencing company that surged early in the pandemic said it would lay off 1,300 “talented, hardworking colleagues” in early February. The cuts represent about 15% of Zoom’s workforce, according to a company blog.

    The company tripled in size in 2020 as white-collar workers shifted to remote environments, but its user growth then slowed dramatically.

    “We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably,” CEO Eric Yuan said in a post. “[T]he uncertainty of the global economy, and its effect on our customers, means we need to take a hard – yet important – look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he added.

    Yuan said he would forgo his entire salary and bonus for the current fiscal year, and that the executive team would see 20% salary cuts and no bonus. Yuan made $320,000 in compensation last year, and also holds about $3.3 million worth of Zoom stock, according to securities filings.

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  • Big Tech just added to a shrinking forecast, but maybe Bob Iger can brighten the mood

    Big Tech just added to a shrinking forecast, but maybe Bob Iger can brighten the mood

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    Wall Street’s expectations for 2023 have been diving as forecasts for the new year come in light, and the news could get worse once they factor in disappointing results from Big Tech. But at least Bob Iger is coming back for a sequel.

    Google, Facebook, Amazon and Apple all disappointed with holiday earnings this week. Their forecasts ranged from nonexistent to piecemeal to meh, and the fallout will only add to the biggest dive in Wall Street’s expectations through the beginning of a year since 2016.

    Analysts’ average forecast for 2023 earnings from the S&P 500 index
    SPX,
    -1.04%

    dropped by 2.5% in January, according to FactSet Senior Earnings Analyst John Butters, the worst in seven years. Those projections began heading lower last year, and the decline is only steepening — analysts are now projecting 3% earnings growth in 2023, and that is contingent on a big holiday rebound from the results being released this quarter.


    Uncredited

    The news was even worse for the first quarter, for which projections declined 3.3% in January as companies whiffed on their forecasts at a rapid pace: 86% of the 43 companies that have guided for first-quarter earnings have missed projections, Butters reported. Earnings are now expected to decline 4.2%, which would be the first year-over-year earnings decline since the third quarter of 2020, when the COVID-19 pandemic write-offs started to come in.

    Big Tech only added to the downward trajectory in recent days. Amazon.com Inc.
    AMZN,
    -8.43%

    missed on its holiday earnings as well as its forecast for the first quarter, and that company could determine if S&P 500 profits rise in 2023 all on its own. Amazon’s worst holiday earnings since 2014 could also contribute to the consumer discretionary sector’s first earnings decline since the beginning of the pandemic, with holiday sector earnings now expected to drop more than 5%.

    Google parent Alphabet Inc.
    GOOGL,
    -2.75%

    GOOG,
    -3.29%

    and Facebook parent Meta Platforms Inc.
    META,
    -1.19%

    also missed their respective earnings targets amid problems with the digital-advertising industry, leading to the communications-services sector having the worst earnings season in the S&P 500. Profit has declined 25.2% in that sector so far, the worst among the 11 S&P 500 sectors, but would be down just 6.5% without the effects of Meta and Alphabet, Butters reported.

    Apple Inc.
    AAPL,
    +2.44%

    also didn’t do projections any favors, reporting its biggest sales decrease since 2016 and an earnings miss Thursday afternoon. In a piecemeal forecast, executives projected a similar sales decline in the calendar first quarter, though unofficially.

    This week in earnings

    After the busiest week in earnings season wrapped up, don’t expect much of a breather — 95 S&P 500 companies are expected to report in the week ahead, the third consecutive week with at least 90 companies reporting. There will be plenty of intrigue among companies not in the S&P 500 too, including Robinhood Markets Inc.
    HOOD,
    -3.59%

    and Affirm Holdings Inc.
    AFRM,
    -14.14%

    reporting together on Wednesday afternoon.

    Only one Dow Jones Industrial Average
    DJIA,
    -0.38%

    stock will report, but that is the Wednesday call you will want to tune in for: Bob Iger’s return to the Walt Disney Co.
    DIS,
    -2.21%

    earnings show.

    The calls to put on your calendar
    The numbers to watch

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  • Facebook’s VR Division Lost $13.72 Billion In 2022

    Facebook’s VR Division Lost $13.72 Billion In 2022

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    Image: Kotaku / Shutterstock / Kevin Dietsch (Getty Images)

    Facebook’s parent company, Meta, is having a decent day today after beating revenue and user activity forecasts for its final fiscal quarter of 2022. But its VR division isn’t helping the company make money. In fact, it’s costing the company billions in losses.

    While it’s true that Meta’s stock is rising in after-hours trading today after sharing fairly positive fourth-quarter financial results, its VR division, Reality Labs, didn’t have such positive news to share, as it’s continuing to blow through money at a shocking rate. Today, the company confirmed it lost over $4 billion to VR and metaverse development in its final quarter of 2022. And in total, it lost well over $13 billion in 2022 trying (and failing) to build a metaverse people would flock to.

    In comparison, Meta brought in $32.1 billion in revenue across all departments and apps.

    As reported by Decrypt.co, Meta’s Reality Labs only brought in $727 million in revenue in the closing months of 2022. That’s not great when compared to the billions spent on the division in the same year, but it’s also worse than you might think. That figure is down 17% from the division’s revenue in the same period of 2021. Ouch.

    Remember too that Facebook’s flagship metaverse software, Horizon Worlds, has basically been a giant flop, with reports that most worlds inside of it are empty and barely played. Not only that, but the company’s own employees barely use it, with a leaked internal memo showing that staff at Meta don’t enjoy using Horizons Worlds because it’s riddled with bugs and other quality issues.

    Really the only big success story from Reality Labs is the Oculus Quest 2 headset, which was seen by many as an affordable alternative to pricey PC and console VR headsets and was also completely standalone. But in July Meta raised the price of that affordable headset by $100, with the 128GB model now costing $400 and the 256GB version now going for $500.

    In November 2022, Meta laid off 11,000 employees, blaming covid, “macroeconomic downturn, increased competition, and ads signal loss.” Zuckerberg blamed himself for the layoffs, but conveniently didn’t mention in his announcement of layoffs how much money the company is continuing to spent on VR and metaverse development. Over the past few years the company has spent tens of billions of dollars trying to make a VR-powered metaverse a thing.

    And now, in February 2023, following massive layoffs and continued losses, it only has an unappealing and empty PlayStation Home clone to show for all its troubles.

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    Zack Zwiezen

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  • Meta stock spikes nearly 20% as cost cuts and $40 billion for investors overshadow earnings miss

    Meta stock spikes nearly 20% as cost cuts and $40 billion for investors overshadow earnings miss

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    Meta Platforms Inc. shares soared in after-hours trading Wednesday despite an earnings miss, as the Facebook parent company guided for potentially more revenue than Wall Street expected in the new year and promised more share repurchases amid cost cuts.

    Meta
    META,
    +2.79%

    said it hauled in $32.17 billion in fourth-quarter revenue, down from $33.67 billion a year ago but stronger than expectations. Earnings were $4.65 billion, or $1.76 a share, compared with $10.3 billion, or $3.67 a share, last year.

    Analysts polled by FactSet expected Meta to post fourth-quarter revenue of $31.55 billion on earnings of $2.26 a share, and the beat on sales coincided with a revenue forecast that also met or exceeded expectations. Facebook Chief Financial Officer Susan Li projected first-quarter sales of $26 billion to $28.5 billion, while analysts on average were projecting first-quarter sales of $27.2 billion.

    Shares jumped more than 19% in after-hours trading immediately following the release of the results, after closing with a 2.8% gain at $153.12.

    Alphabet Inc.’s
    GOOGL,
    +1.61%

    GOOG,
    +1.56%

    Google and Pinterest Inc.
    PINS,
    +1.56%

    benefited from Meta’s results, with shares for each company rising more than 4% in extended trading Wednesday.

    “Our community continues to grow and I’m pleased with the strong engagement across our apps. Facebook just reached the milestone of 2 billion daily actives,” Meta Chief Executive Mark Zuckerberg said in a statement announcing the results. “The progress we’re making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization.”

    Read more: Snap suffers worst sales growth yet in holiday quarter, stock plunges after earnings miss

    Facebook’s 2 billion-user milestone was slightly better than analysts expected for user growth on Meta’s core social network. Daily active users across all of Facebook’s apps neared, but did not crest, another round number, reaching 2.96 billion, up 5% from a year ago.

    Meta has been navigating choppy ad waters as it copes with increasing competition from TikTok and fallout from changes in Apple Inc.’s
    AAPL,
    +0.79%

    ad-tracking system in 2021 that punitively harmed Meta, costing it potentially billions of dollars in advertising sales. Meta has invested heavily in artificial-intelligence tools to rev up its ad-targeting systems and making better recommendations for users of its short-video product Reels, but it laid off thousands of workers after profit and revenue shrunk in recent quarters.

    The cost cuts seemed to pay off Wednesday. While Facebook missed on its earnings, it noted that the costs of its layoffs and other restructuring totaled $4.2 billion and reduced the number by roughly $1.24 a share.

    Meta executives said they now expect operating expenses to be $89 billion to $95 billion this year based on slower salary growth, cost of revenue, and $1 billion in savings from facilities consolidation — down from previous guidance for $94 billion to $100 billion. Capital expenditures are expected to be $30 billion to $33 billion, down from previous guidance of $34 billion to $37 billion, as Meta cancels multiple data-center projects.

    In a conference call with analysts late Wednesday, Zuckerberg called 2023 the “year of efficiency” after 18 years of unbridled growth. He recommitted to Meta’s emphasis on AI and the metaverse, a platform for “better social experiences” than the phone, he said.

    “The reduced outlook reflects our updated plans for lower data-center construction spend in 2023 as we shift to a new data-center architecture that is more cost efficient and can support both AI and non-AI workloads,” Li said in her outlook commentary included in the release.

    Meta expects to increase its spending on its own stock. The company’s board approved a $40 billion increase in its share-repurchase authorization; Meta spent nearly $28 billion on its own shares in 2022, and still had nearly $11 billion available for buybacks before that increase.

    “Investors are cheering Meta’s plans to return more capital to shareholders despite worries over rising costs related to its metaverse spending,” said Jesse Cohen, senior analyst at Investing.com.

    “At first glance…Meta getting its mojo back,” Baird Equity Research analyst Colin Sebastian said in a note late Wednesday. “Results and guidance look particularly solid after Snap’s dismal report; however, further cuts to operating and capital expenditures announced this afternoon were perhaps the biggest surprise.”

    UBS analyst Lloyd Walmsley said he anticipates double-digit revenue growth exiting 2023 and strong growth in earnings and free cash flow.

    The results came a day after Snap Inc.
    SNAP,
    -10.29%

    posted fourth-quarter revenue of $1.3 billion, flat from a year ago and the worst year-over-year sales growth Snap has ever reported. But they also arrived on the same day Facebook scored a major win in a California court. The company successfully fended off the Federal Trade Commission bid to win a preliminary injunction to block Meta’s planned acquisition of VR startup Within Unlimited.

    Read more: Meta wins bid to buy VR startup Within Unlimited, beating U.S. FTC in court: report

    Meta shares have plunged 53% over the past 12 months, while the broader S&P 500 index 
    SPX,
    +1.05%

    has tumbled 10% the past year.

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  • Here are the latest tech layoffs as the industry shudders

    Here are the latest tech layoffs as the industry shudders

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    The high-flying tech industry is facing a reckoning as the economy slows and customers pull back on spending.

    In the past month alone, tech companies have cut nearly 60,000 jobs, reversing a hiring spree that surged during the pandemic as millions of Americans moved their lives online. IBM was one of the latest to slash its headcount, announcing 3,900 layoffs in January, or less than 2% of its global workforce. 

    Even with the surge in layoffs, most tech companies are still vastly larger than they were three years ago. But industry analysts expect further industry cuts in 2023 as the Federal Reserve continues to increase interest rates as it hits the brakes on economic growth. 

    This year, “a major theme will be tech layoffs as Silicon Valley, after a decade of hyper growth, now comes to the reality of cost-cutting mode,” analysts at Wedbush said in a research note Friday.

    As for what that means for tech workers, it’s too soon to tell, experts say. Despite the cascade of layoff announcements, employment in the information sector rose through most of last year, dropping only in December. That suggests demand for talent remains strong enough that many laid-off tech employees will likely be able to find new jobs.

    “While layoffs from high-profile firms make the headlines, plenty of firms are desperate for more workers, especially tech workers. Those workers are in high demand from the auto industry to the Department of Veterans Affairs to not-for-profits,” said Robert Frick, corporate economist at Navy Federal Credit Union.

    “The labor market is still so tight that many tech workers, and workers with other skills, are snapped up well before they need to collect an unemployment check. And they are more likely to be snapped up by smaller firms, which have a much greater demand for workers than major corporations.

    The tech downturn is an anomaly amid a job market that remains the tightest in decades and has allowed many workers to command higher pay. Across the economy, announced layoffs last year fell to their second-lowest in 30 years of tracking by outplacement firm Challenger, Gray & Christmas, second only to 2021.

    But even as overall layoffs fell, tech layoffs rose, with a record 1 in 4 layoffs last year taking place in the tech sector.

    Here are the largest tech companies to announce cuts since 2022.

    Alphabet   

    The Google parent said on January 20 that it would let go of 12,000 workers, or about 6% of its 186,000-strong global workforce. The cuts apply “across Alphabet — product areas, functions, levels and regions,” CEO Sundar Pichai said.

    Pichai told employees that the Silicon Valley company simply hired too fast during the pandemic. 

    “Over the past two years we’ve seen periods of dramatic growth,” Pichai wrote in an email that was also posted on Alphabet’s corporate blog. “To match and fuel that growth, we hired for a different economic reality than the one we face today.”

    Amazon

    The e-commerce company is moving to cut about 18,000 positions, a downshift that began in November and that will continue into this year. That’s just a fraction of its 1.5 million-strong global workforce. 

    While the vast majority of the company’s employees work in its vast warehouse and logistics operation — which doubled in size during the pandemic — the cuts mostly affect white-collar employees in some of the company’s less profitable sectors, including the division responsible for its voice assistant, Alexa.

    Carvana

    The online car seller cut about 2,500 workers in May 2022, or 12% of its workforce. The company was widely criticized for its handling of the layoffs, many of which were done via Zoom and email. 

    The Phoenix-based company, which delivers new and used cars to buyers, blamed the cuts on an “automotive recession.”

    Coinbase

    The cryptocurrency trading platform cut roughly 20% of its workforce, or about 950 jobs, in January. It’s the second round of layoffs in less than a year, with 1,100 workers losing their jobs in June.

    IBM

    The company plans to cut about 3,900 workers, its chief financial officer told Bloomberg in January. The cuts amount to about 1.5% of the company’s global workforce, and come even as IBM posted better-than-expected revenue for the most recent quarter.

    The Armonk, New York-based firm will continue hiring in what its financial officer called “higher-growth areas.” IBM last year said it would invest tens of billions of dollars across New York’s Hudson Valley to spur semiconductor manufacturing.

    Lyft

    The ride-hailing service said in November it was cutting 13% of its workforce, almost 700 employees. The layoffs affect its corporate employees, since Lyft’s army of drivers are considered independent businesses, not employees of the transportation company. 

    Meta

    The parent company of Facebook in November laid off 11,000 people, about 13% of its workforce. Meta has struggled more than many tech companies this year; its user base has shrunk, while CEO Mark Zuckerberg has put billions of dollars into building what he calls the “metaverse,” to the consternation of its investors. The company’s stock has lost two-thirds of its value since peaking in August 2021.

    Microsoft

    The software company in January said it would cut about 10,000 jobs, almost 5% of its workforce, as it refocuses its strategy on artificial intelligence and away from hardware. In the two years ending in June 2022, Microsoft had expanded from 163,000 workers to 221,000.

    PayPal

    The digital payments company said in January it was cutting 2,000 jobs, or about 7% of its workforce, as it contends with what it called “the challenging macro-economic environment.”

    The San Jose, California-based company is the parent of PayPal is the parent of payment apps Venmo and Xoom and the coupon service Honey, among other brands. PayPal said the cuts would affect different brands unequally, although it did not specify further.

    Robinhood

    The company, whose app helped attract a new generation of investors to the market, announced in August that it would reduce its headcount by 23%, or approximately 780 people. That’s the second round of recent layoffs for the company, which last year cut 9% of its workforce.

    Salesforce

    The company cut 10% of its workforce, or about 7,300 employees, in January. It also said it was closing some offices, citing a “challenging” environment and lower customer spending. 

    Snap

    The parent company of social media platform Snapchat said in August that it was letting go of 20% of its staff. Snap’s staff has grown to more than 5,600 employees in recent years, meaning that, even after laying off more than 1,000 people, Snap’s staff would be larger than it was a year earlier.

    Spotify

    The music streaming service said in January it was cutting 6% of its workforce, or roughly 580 jobs, as part of a push to make the company more efficient. In 2022, Spotify’s operating costs grew twice as fast as its revenue, CEO Daniel Ek said, a pace he called “unsustainable.”

    “We still spend far too much time syncing on slightly different strategies, which slows us down,” CEO Daniel Elk said in a January 23 letter to employees posted on the company’s site. “And in a challenging economic environment, efficiency takes on greater importance.”

    Stripe

    The payment processor announced layoffs of roughly 1,000 workers in November,  amounting to 14% of its workforce. In an email to employees posted on Stripe’s website, CEO Patrick Collison said the company expected “leaner times” amid worsening economic conditions.

    Twitter

    About half of the social media platform’s staff of 7,500 was let go after the billionaire CEO of Tesla, Elon Musk, acquired the service in October. An unknown number have left, with some objecting to the new ownership and Musk’s demand for an “extremely hardcore” attitude.

    Wayfair

    The online shopping company announced in January that it would cut 1,750 workers, or about 10% of its global employees, as it adjusts to falling consumer demand after the home-renovation boom of the pandemic. It’s the second round of layoffs for the Boston-based company, which cut 870 employees in August.

    CEO Niraj Shah said the company “simply grew too big.”

    “In hindsight, similar to our technology peers, we scaled our spend too quickly over the last few years,” Shah said in a statement.

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