Meta Platforms (NASDAQ:META) has reportedly begun its third wave of layoffs as part of CEO Mark Zuckerberg’s plan to significantly reduce costs. This follows the announcements made in March, which estimated the dismissal of about 10,000 employees and the closing of nearly 5,000 additional positions yet to be filled. This action follows the previously announced layoffs of 11,000 employees last fall. The current round seems to predominantly affect those in user experience, marketing, and recruiting roles.
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Meanwhile, a ruling by a European Union appeals court favored the bloc’s antitrust regulator’s request for more information on Facebook’s marketplace. The EU court found Meta’s request for documents lawful and stated that Meta failed to prove the request was unnecessary. Furthermore, the court found that Meta did not sufficiently protect sensitive personal data, despite having a virtual data room. This comes on the heels of a $1.3 billion fine levied against Meta by Ireland’s Data Protection Committee over privacy violations.
In response to investor concern about high spending and declining revenue, Zuckerberg had declared this a “year of efficiency” for the company. As a result, Meta has been actively cutting costs, making it one of the most assertive tech companies in cost-cutting efforts. However, the company has yet to comment on the recent layoffs or the EU court ruling.
Overall, Wall Street analysts have a consensus price target of $281.05 on META stock, implying 13.87% upside potential, as indicated by the graphic above.
