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- Meta Makes Big Move
Good Morning!
Happy Friday! Let’s see what is moving markets:
👉 Meta makes huge investment
👉 Wayfair laying off employees
👉 Macy’s multiple closures
Let’s get into it!
META: Huge Investment
Meta is investing significantly in Nvidia's advanced computer chips, essential for its artificial intelligence projects. Mark Zuckerberg announced on Instagram Reels that by 2024, Meta plans to integrate 350,000 Nvidia H100 graphics cards into its computing infrastructure, crucial for their AI development. Analysts estimate that purchasing at the lower end of the price range could cost Meta around $9 billion.
Additionally, Zuckerberg mentioned that Meta's infrastructure would include nearly 600,000 H100 equivalent GPUs, considering other models. This move aligns with Meta's commitment to artificial general intelligence (AGI) research, a field also pursued by companies like OpenAI and Google's DeepMind.
Source: CNN
Meta's focus on expanding its computing capabilities is reflected in its projected 2024 expenses of $94 to $99 billion. Furthermore, Zuckerberg highlighted Meta's plan to open-source its AI developments responsibly and mentioned the ongoing collaboration between Meta's AI research teams in developing new technologies.
🎯 GRIT TAKE: This is a massive announcement...upgrade to VIP to read the full GRIT Take.
WAYFAIR: Incoming Layoffs
Wayfair is reducing its global workforce by 13%, amounting to about 1,650 layoffs, including 19% of its corporate team, primarily in management and leadership roles. Announced on Friday, this move is part of the company's strategy to streamline operations and reduce costs following over-expansion during the COVID-19 pandemic. This restructuring, the third since summer 2022, aims to save around $280 million. Following the announcement, Wayfair's stock rose 15% in premarket trading.
Source: Vox
The layoffs align with broader retail industry trends, as seen with recent workforce reductions by Hasbro, Etsy, and Macy's amid slowing demand and economic uncertainty. According to CEO Shah, Wayfair's decision is not due to poor quarter performance but a strategic shift to its core business structure, necessitated by a pandemic-driven sales boom that temporarily doubled its revenue.
Macy’s: Multiple Closures
Macy's is reducing its workforce by 3.5% and closing five mall stores in a cost-cutting measure to address sales decline. This change affects about 2,350 jobs across its corporate and store locations. The stores set to close by early 2024 are located in Arlington, Virginia; San Leandro and Simi Valley, California; Lihue, Hawaii; and Tallahassee, Florida.
Source: Macy’s
This initiative is part of Macy's strategy to adapt to a retail environment increasingly shifting towards online shopping and value-seeking consumers. The company is refocusing on its private-label brands, expanding into smaller, non-mall locations, and leveraging its Bluemercury beauty chain and Bloomingdale's to drive growth. This move also includes plans to open 30 new strip mall stores targeting suburban shoppers.
Headlines You Need To Know: 🎙
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Chart of the Day
📊 How Meta Makes Money
Source: App Economy Insights
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