Being that it’s September 30th, today is the final day of Q3. As the month and quarter comes to an end, here are some bleak statistics on the current market conditions:
- U.S. stocks, as measured by the benchmark S&P 500 index, officially fell into “bear market” territory in June 2022.
- Yesterday, the S&P 500 closed at a new low for 2022, declining 2.1% to 3,640.47.
- So far, 2022 has been the most devastating period for bonds since at least 1926.
- The first half of 2022 has seen the fifth-worse start of any year in the history of U.S. equities.
The bleak economic outlook is forcing companies to make changes as we enter the fourth quarter, and Meta is leading the pack.
Yesterday, Meta Platforms CEO Mark Zuckerberg outlined sweeping plans to reorganize teams and reduce headcount for the first time ever.
Zuckerberg said Meta will freeze hiring, reduce its headcount and enact its first major budget cut since he founded Facebook in 2004.
In company communication with employees, the CEO cited the uncertain macroeconomic environment for making the changes. “I had hoped the economy would have more clearly stabilized by now, but from what we’re seeing it doesn’t yet seem like it has,” Zuckerberg told employees, “so we want to plan somewhat conservatively.”
The tech industry has been suffering through a slowdown in recent months, following a spike of success that accelerated during the COVID pandemic. Now, amid a broad global economic downturn, rising interest rates and regulatory struggles, many companies — tech and beyond — are slowing or stopping hiring all together.
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