The bloodletting in big tech continues after a year of slowing sales and profits along with de facto valuation resets at the hands of an aggressive Federal Reserve.
Meta said Wednesday it will slash 13% of its workforce as it looks to redirect resources to Mark Zuckerberg’s metaverse project and appease angry shareholders.
Meta stock popped 8% on the news, paring the year-to-date decline to 69%.
Meta was the top trending ticker on the Yahoo Finance platform through early afternoon.
Meanwhile, a source familiar with the situation tells Yahoo Finance Salesforce laid off close to 1,000 employees this week. The decision comes a few months after Salesforce Marc Benioff told Yahoo Finance that he was serious about improving profit margins.
Salesforce stock fell slightly during Wednesday’s session.
The below charts from Battery Ventures sheds light on why household name tech companies are trimming the fat — and how many are doing so.
Chart 1: Valuation has compressed across software stocks as interest rates have risen.
Chart 2: The number of companies in tech announcing layoffs has surged.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
David Hollerith is a senior reporter at Yahoo Finance covering the cryptocurrency and stock markets. Follow him on Twitter at @DsHollers.
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