Meta spent almost a billion in Q4 just to layoff its employees
Per Business Insider
After Meta took a huge drop in 2022, the company announced that it would lay off over 11,000 employees. A report shows that the company spent $975 million in severance costs in Q4 alone.
Meta was officially dubbed the worst-performing stock in the S&P 500 in 2022. The company stock dropped by roughly 73% in a report made in November, as it lost $9.4 billion in 2022 alone.
However, the company has shown signs of improvement as Meta CEO Mark Zuckerberg's net worth increased by $12.5 billion in a single day. This brought his net worth back to $67.6 billion.
Despite the massive severance costs, the company said it could offset the expense due to decreased payroll, bonuses, and other expenses. This came as the company announced that it would be letting go of 13% of its total headcount.
Zuckerberg gave a previous explanation on Nov 9 regarding how his investment choices did not go as planned. This resulted in the announcement of the company letting go of a huge chunk of its staff.
While the company already incurred almost a billion in severance costs in 2022 alone, Meta could see even higher costs as the company is speculated to let go of more employees.
Another report by Business Insider shared how the company spent over $88,000 per employee as part of its layoffs. Although close to a billion, Meta's exit package costs are only about half of what Alphabet, Google's parent company, expects it to spend.
Alphabet's plan to lay off 12,000 employees, or 6% of its global workforce, would result in $1.9 to $2.3 billion in expected expenses. Microsoft is expected to spend $800 million, while Amazon already spent $640 million on layoffs in Q4 of 2022.
See flow at unusualwhales.com/flow.
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