The world this week--Business
Meta laid off 11,000 employees, or 13% of its workforce, amid falling revenues from advertising and e-commerce.
The parent company of Facebook, Instagram and WhatsApp is also considering other cost-cutting measures, and suggested it would close offices.
In a separate filing it said it expects losses to grow significantly next year at its Reality Labs division, at a time when investors are already frustrated with Meta’s focus on creating a metaverse at the expense of the rest of the business.
Mark Zuckerberg said he took full responsibility.
The company’s market value is now around $270bn, down from $1trn in September 2021.
Meta was not the only big tech company to announce job cuts.
Stripe, an online payments firm, is letting go of 14% of its workforce, and Lyft, a ride-hailing company, of 13%.
Amazon has introduced a freeze on hiring for its corporate jobs.
Twitter laid off half its staff following Elon Musk’s takeover, though it has reportedly asked some of them to come back.
More than 12m people signed up to Disney+ in the three months to October 1st, taking the total number of subscribers to 164m.
That is a faster rate of growth in users than at Netflix, though Netflix has 223m subscribers.
Operating losses at Disney+ have soared, however, causing Disney’s share price to drop by 13%.
Following Netflix, it is introducing an ad-supported subscription plan next month to entice consumers and generate new revenue streams.
Advancing its ambitions in the electric-car market, Foxconn said it would invest $170m in Lordstown Motors, a startup that is developing an electric-powered pick-up truck at a factory in Ohio.
Renault is rearranging its business around five divisions, including one based on “new mobility, energy and data-based services”.
The overhaul accelerates the flotation of its electric-vehicle unit, Ampere, next year.
Renault also launched a joint venture with Geely, a Chinese carmaker, to make internal-combustion, hybrid and plug-in hybrid engines.
In Britain speculation mounted that the government will impose a road tax on electric vehicles for the first time when it unveils a budget on November 17th.
EVs are currently exempt from the tax, but the government is looking at ways to offset a fall in revenues from fuel duties because of the switch away from petrol to electric.
The global cryptocurrency market was shaken by the looming collapse of FTX, one of the biggest exchanges, after a run of customer withdrawals left it facing a liquidity crunch.
FTX turned to Binance, an arch-rival, for help.
Binance at first said it would take over FTX, but then pulled out of the deal, citing reports that FTX had “mishandled customer funds” and was being investigated by the authorities.
Cryptocurrency prices plunged. Bitcoin fell to around $16,000, its lowest level in two years.