There are a number of reasons for Meta’s strong stock performance in 2023 — the stock is up more than 130% over the past six months — but one of the biggest catalysts has been the company’s plan to cut 10,000 employees this year.
“I do think that Elon led a push early on to make Twitter a lot leaner. And I think that you can agree or disagree exactly with the tactics on how he did that… but a lot of the specific principles he pushed on… fewer layers of manager. I think that those were generally good changes and I think they were probably good changes for the industry,” Zuckerberg said during an interview with MIT podcaster Lex Fridman.
Musk has laid off nearly 3,700 employees — about half of Twitter’s workforce — since he took over in November.
Meta announced in November that it was cutting about 13% of its 87,000-person headcount, or about 11,000 jobs. Combined with the 10,000 jobs the company is cutting this year, Meta is expected to see a total headcount reduction of 25%.
And the stock will be rewarded for the moves.
Back before Meta announced the layoffs, Cramer was basically done with the stock after being one of its biggest champions for years. Now that the company is on a job cutting spree, he is back on the bandwagon and the sky’s the limit once again for the social media company.