News for hackers. Stuff that matters.

A comment on Meta lays off 11,000 people. Parent comment

Re:Meta lays off 11,000 people by disgruntledphd2 on Wednesday November 09, 2022 @06:49AM (#33530226)
It would have cratered their gross margins though, which would have meant a (potentially permanent) hit to the share price.

I agree that it would have been a good strategy, but that's (presumably) why they never did it.

[ Parent | on HN ]
Re:Meta lays off 11,000 people by danpalmer on Wednesday November 09, 2022 @07:03AM (#33530335)
Interesting. Is that because payments are much lower margin than ads? Surely investors would be smart enough to see the additional revenue, and likely additional benefit to the ads business, as being worth it?
[ Parent | on HN ]
Re:Meta lays off 11,000 people by disgruntledphd2 on Wednesday November 09, 2022 @11:08AM (#33533611)
Investors like standardized numbers apparently
[ Parent | on HN ]
Re:Meta lays off 11,000 people by lvl102 on Wednesday November 09, 2022 @08:22AM (#33531196)
Payment has much higher multiple especially compared to FB. It’s quite literally the closest thing to printing money.
[ Parent | on HN ]
Re:Meta lays off 11,000 people by disgruntledphd2 on Wednesday November 09, 2022 @11:08AM (#33533619)
It doesn't have the same margins as advertising.
[ Parent | on HN ]