WIKIFX REPORT: Massive Meta Layoff – Is the labor market finally starting to crack?

Last night it was announced that Meta (Facebook) was cutting 11,000 employees, reducing their total staff by 13%. This continues a worrying trend of large-scale tech company job cuts that could be a signal of what is to come for the broader employment market.

On Monday, it was discussed the most recent non-farm payroll data release, which saw a somewhat confounding mix of increased unemployment coupled with an increase in job openings. Today, the numbers are a lot more one-sided, as industry wide layoffs are finally coming home to roost.

For example, this upcoming quarter will be the first time in Facebooks history (since 2005) that they will have a reduction in their number of employees. The tide is most definitely turning.

Interestingly, Metas stock price went up by 3% to $99 during premarket trading, a clear sign that market participants believe cutting employee costs is the most appropriate financial decision large companies can make within the confides of the current overly difficult economic conditions. Meta closed the trading day up over 5%, priced at roughly $101.

Meta was not the only influential tech firm to announce significant layoffs today. Online real estate brokerage firm Redfin announced a similar 13% staff reduction. The past month alone, we have seen substantial layoffs from all areas of the tech industry.