Facebook parent company Meta announces plans to slow hiring
Meta said Thursday it is cutting back on hiring. The move is one of several shifts the Facebook parent company is making following a period of slower-than-usual growth.
“We regularly re-evaluate our talent pipeline according to our business needs and in light of the expense guidance given for this earnings period, we are slowing its growth accordingly,” said a statement provided by Meta spokesperson Andrea Beasley. The company still plans to “grow our workforce to ensure we focus on long term impact,” the statement said.
The company does not currently have plans for layoffs, but the hiring slowdown marks a reversal from aggressive workforce growth during the first three months of 2022. As of March 31, the company’s headcount was 77,805, up 28% year-over-year with 5,800 net new employee adds during the first quarter. Meta plans to slow or halt hiring for most mid- to senior-level positions, and recently also paused hiring early-career engineers. Business Insider first reported Meta’s plan to slow hiring.
Meta shares fell nearly 7% Thursday.
The announcement comes a week after Meta posted its slowest revenue growth in years during the first three months of 2022, and profits down 21% from the same period in the prior year. It is projecting revenues from the current quarter to be between $28 billion to $30 billion, which would be nearly flat compared to the $29 billion it brought in during the prior-year quarter.
Meta is in the midst of attempting to shift its strategy to focus on its plans for an augmented and virtual-reality-enabled future. The company is also facing steep competition from rivals like TikTok, lost business in Russia, difficulties monetizing crucial video content and challenges to its advertising business from privacy changes by Apple. Meta reported last week that its average price-per-ad decreased 8% year-over-year during the first quarter.
Although the company last week lowered its estimate for its full-year expenses by about $3 billion, Zuckerberg warned investors that Meta planned to slow the pace of some investments because of its current challenging growth prospects.
“After the start of Covid, the acceleration of e-commerce led to outsized revenue growth, but we’re now seeing that trend back off,” Zuckerberg said on an earnings call with analysts. “Based on the strong revenue growth we saw in 2021, we kicked off a number of multi-year projects to accelerate some of our longer-term investments … but with our current business growth levels, we are now planning to slow the pace of some of our investments.”
On the call, Zuckerberg discussed how the company would be focusing on several key areas of investment, such as short-form video and the immersive, future form of the internet the company calls the “metaverse.”
“We’re shifting the bulk of the energy inside the company toward those high priority areas,” he said. “We have a lot of awesome people here and a lot of the decisions we get to make on a day-to-day basis are: how do we direct the really talented people that are already at the company … rather than always relying on just getting more and more new people from the outside.”
Zuckerberg also said Meta hopes in the coming years to generate sufficient operating income growth from its family of apps to fund its investments in Reality Labs while still growing the company’s overall profitability, but warned about short-term challenges.
“Of course, our priority remains building for the long-term, so while we’re currently building our plans to achieve this, it is possible that prolonged macroeconomic or business uncertainty could force us to trade off against shorter-term financial goals,” Zuckerberg said. “But we remain confident in our long-term opportunities.”
—Duffy, Bay Area News Group
LAKEPORT
Boccabella resigns as Lakeport Main Street Association President
Robert Boccabella, Business Design Services, announces his resignation as Lakeport Main Street Association President and Board Member, as of May 3, 2022, due to complex circumstances.
Robert wishes LMSA continued growth and value for Lakeport and Lake County with its many projects and events.
—Submitted
PALO ALTO
John Doerr gives $1.1 billion to Stanford for new climate school; largest gift in Stanford history
In the largest gift ever to Stanford University, Silicon Valley venture capitalist John Doerr and his wife, Ann, have agreed to donate $1.1 billion to set up a new school on the campus devoted to the study of climate change and its solutions.
The gift, announced Wednesday, ranks as the second largest donation to any university in American history, behind $1.8 billion that former New York City Mayor Michael Bloomberg gave to his alma mater, Johns Hopkins University, in 2018.
The school is expected to propel Stanford, which already has considerable facilities researching energy and the environment, to the forefront of climate research among the world’s universities. It will be called the Stanford Doerr School of Sustainability.
“Stanford is making a bold, actionable, and enduring commitment to tackle humanity’s greatest challenge, and we have deep conviction in its ambition and abilities,” John and Ann Doerr said in a statement.
Doerr, 70, of Woodside, was listed as the 146th richest person in the world in the Forbes 2022 list of wealthiest people, with a net worth of $12.7 billion. A St. Louis native, he earned degrees in electrical engineering from Rice University then a Harvard MBA in the 1970s. He came to the Bay Area with no job, then was hired by Intel in 1974, working as a salesman and obtaining several patents for memory devices.
He left in 1980 to join Kleiner Perkins, a venture capital firm on Sand Hill Road in Menlo Park. Since then, he rose to become chairman, helping lead early investments into companies such as Google, Amazon, Sun Microsystems, Compaq, Netscape, DoorDash and Slack.
Ann Doerr is chair of Khan Academy, a non-profit educational organization based in Mountain View that provides free online video lessons in math and other subjects. She also is a former board member and current advisory board member of the Environmental Defense Fund and a former trustee of Rice University.
In addition to the Doerr’s gift, Stanford also received a staggering $590 million for the new climate school from other donors, many of them tech titans. Among them are billionaire Jerry Yang, the former CEO of Yahoo! and his wife, Akiko Yamazaki; David Filo, co-founder of Yahoo! and his wife, Angela Filo; the William and Flora Hewlett Foundation; and Susan Orr, daughter of Hewlett Packard co-founder David Packard, and her husband, Lynn Orr, a professor of engineering emeritus at Stanford.
The new school’s academic departments will launch next year with about 90 existing faculty members from Stanford. The university will add 60 faculty over the next 10 years, hiring experts in energy, climate science, sustainable development and environmental justice.
Because of the burning of fossil fuels, which trap heat in the atmosphere, the Earth’s climate is steadily warming. The 10 hottest years since 1880 when modern temperature records began all have occurred since 2005, according to NASA and NOAA, the agency that runs the National Weather Service.
The hotter temperatures have led to an increase in wildfires, more severe droughts, sea level rise and other growing problems. California has led efforts to reduce fossil fuel burning, passing laws that mandate renewable energy such as solar and wind and providing tax breaks and other incentives for electric vehicles. The state’s emissions peaked in 2004 and have fallen 14% since then.
But other states and federal leaders have done little or opposed efforts to reduce coal, oil and other fossil fuels — mostly Republicans such as former President Trump, who denied the science and said that climate change was a Chinese hoax to harm the American economy.
In the most recent Gallup poll on environmental issues in March, public concern about the quality of the environment was near a two-decade high, with 44% of Americans worrying “a great deal” about it. The rest said they worried “a fair amount” (27%) or “only a little” or “not at all” (28%). Democrats and independents said they were more concerned than Republicans did.
Asked which environmental issues they were most concerned about, Americans ranked water pollution, air pollution and the extinction of plant and animal species higher than climate change.
As a result, some skeptics said huge gifts to universities aren’t enough.
“I don’t see how giving a billion dollars to a rich university is going to move the needle on this issue in a near-term time frame,” David Callahan, author of “The Givers: Wealth, Power, and Philanthropy in a New Gilded Age” told the New York Times on Monday when asked about Doerr’s gift. “It’s nice that he’s parting with his money, but that billion dollars could be better spent trying to move this up on the scale of public opinion. Until the public sees this as a top tier issue, politicians are not going to act.”
The new school’s dean will be Arun Majumdar, who currently works at Stanford as a professor of mechanical engineering and materials science. Majumdar is a former vice president for energy at Google, has a PhD in engineering from UC Berkeley and served as undersecretary for energy in the Obama Administration.
“The Stanford Doerr School of Sustainability will not only harness the intellectual horsepower of our students, faculty, and staff across our campus,” Majumdar said, “but also partner with external organizations around the world to co-develop innovative solutions and identify new insights through research and education. As is often said, we do not inherit the Earth from our ancestors, we borrow it from our children. We must create a future in which humans and nature thrive together.”
—Rogers, Bay Area News Group
