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Meta Secures Emergency Ruling to Halt Promotion of Former Employee’s Tell-All Book

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Meta Platforms has won an emergency arbitration ruling to temporarily halt the promotion of a tell-all book titled “Careless People” written by its former employee, Sarah Wynn-Williams. The ruling, issued by the American Arbitration Association, states that Wynn-Williams must cease promoting the book, which was released by Macmillan, and must take steps to stop its further publication, though the publisher is not required to take any action.

The book, which offers an unflattering portrayal of Meta and its leadership, including CEO Mark Zuckerberg, former COO Sheryl Sandberg, and Chief Global Affairs Officer Joel Kaplan, was described by the New York Times book review as “an ugly, detailed portrait” of the tech giant. Wynn-Williams, who was Meta’s former director of global public policy, claims in the book that the company’s executives were involved in unethical practices.

The ruling, issued after a hearing where Wynn-Williams did not appear, found that Meta would suffer “immediate and irreparable loss” without the emergency relief. Meta spokesperson Andy Stone commented on Threads, stating that the ruling confirmed that the book, which he characterized as “false and defamatory,” should not have been published.

Macmillan, the publisher of the book, argued that it was not bound by the arbitration agreement, which was part of Wynn-Williams’ severance agreement with Meta. Both Wynn-Williams and Macmillan have not yet responded to Reuters’ requests for comment on the arbitration decision.

Microsoft Shares Drop as Cloud Outlook Disappoints, Meta Gains on AI Optimism

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Microsoft saw its shares tumble 6% on Thursday after its artificial intelligence (AI) investments failed to significantly boost cloud revenue. Meanwhile, Meta’s stock rose 4% as CEO Mark Zuckerberg reassured investors of strong growth potential, calling 2024 a “really big year.”

Both tech giants defended their heavy AI spending following concerns sparked by Chinese AI startup DeepSeek’s recent advancements in low-cost AI models. However, while Meta continues to show strong ad revenue growth—justifying its AI investments, according to Evercore analyst Mark Mahaney—Microsoft’s Azure cloud platform has struggled.

Microsoft missed market estimates for Azure’s quarterly revenue growth and provided a third-quarter forecast below expectations. The company had previously promised a second-half rebound, but analysts now express skepticism.

“The second-half re-acceleration story for Azure is not playing out,” said Barclays analyst Raimo Lenschow, adding that Microsoft prioritized AI workloads over core Azure functions, delaying the expected growth recovery.

For Meta, a stronger-than-expected 21% revenue increase eased investor concerns about Zuckerberg’s aggressive AI spending plans, which could reach $65 billion this year. Analysts remain bullish, with Barton Crockett of Rosenblatt stating that “Meta might have more benefits to show from AI than anyone.”

At least 15 brokerages raised their price targets on Meta, which saw a 65% stock gain in 2023, the largest among Big Tech firms. The stock’s rally was set to add over $80 billion to its market value.

Conversely, Microsoft was on track to lose about $182 billion in market capitalization. J.P. Morgan analyst Mark Murphy noted that Microsoft “did not recommit to its Azure second-half outlook the same way it did 90 days ago,” weakening confidence in the company’s cloud growth trajectory.

 

Meta Plans to Trim Workforce by 5%, Focusing on Underperformers

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Meta to Cut 5% of Workforce in Performance-Based Terminations

Meta Platforms Inc. is set to reduce its workforce by approximately 5% through performance-based terminations, as outlined in an internal memo circulated to employees. With a total workforce of around 72,000 as of September, this decision could impact roughly 3,600 employees. CEO Mark Zuckerberg stated in the memo, reviewed by Bloomberg News, that the company aims to raise its performance standards and expedite the removal of underperforming staff.

Shifting Approach to Performance Management

Zuckerberg highlighted a shift in Meta’s approach to managing employee performance. “We typically manage out people who aren’t meeting expectations over the course of a year,” he explained. However, the company is now adopting a more accelerated process for performance-based cuts during this evaluation cycle. This decision reflects Meta’s broader strategy of streamlining operations while maintaining a focus on high-performance standards.

Impact on Meta’s Workforce

The company has indicated plans to replace the roles of terminated employees with new hires later in the year. This approach suggests that Meta is focusing on realigning its workforce to better suit the company’s evolving priorities. According to an insider familiar with Meta’s internal procedures, the current performance cycle is set to conclude in February, signaling that the staff reductions could take effect shortly afterward.

Broader Implications for Meta’s Strategy

This move comes as Meta continues to navigate a challenging economic landscape while investing heavily in emerging technologies such as the metaverse and artificial intelligence. By focusing on performance-based terminations and targeted hiring, Meta aims to optimize its workforce for growth in key areas. The decision also underscores the ongoing pressure on tech companies to balance innovation with operational efficiency amid fluctuating market conditions.