Instagram Layoffs 2024: What to Know About the Latest Instagram Job Cuts

Job cuts continue to flow through into the headlines. Efficiency and cost control are becoming more integral pieces to the strategy being employed at many large tech firms, as evidenced by the latest round of Instagram layoffs. Parent Meta Platforms (NASDAQ: META ) announced today that it has already cut around 60 technical program managers from its Instagram division.

This continues last year’s “year of efficiency” moves, focusing on streamlining its organization. Meta also announced a reworking of its existing management framework, focusing on removing management layers and making its organization more streamlined. Notably, META stock has risen more than 1% on this news today, suggesting the market is taking a positive view of this strategy.

Let’s dive into the market’s reaction and why we could be seeing similar headlines proliferate in the coming weeks and months. Instagram Layoffs Sparks Buying Pressure for META Stock On this news, Meta’s stock price has surged to a fresh 52 week high. It appears that many in the market appear to be positioned for the stock to eventually make new all time highs in short order.

The surge to more than $377 per share today is quite a move from the stock’s low of around $88 per share seen in late 2022. This stock has more than tripled off its lows as investors continue to price in bottom line beats, driven by the company’s increasing focus on efficiency. For companies like Meta that could have arguably hired too aggressively during the pandemic, these moves are being clearly viewed as a positive.

In many areas of the business, Meta appears to still be hiring . However, adjusting a massive company’s management structure from time to time can be a signal to the market that waste isn’t welcome. For investors looking for outsized returns, that’s a good thing. The ultimate impact of these layoffs relative to Meta’s overall workforce is small.

However, again, it’s the signal that’s being sent to the market that matters. So long as Meta continues to ramp down its loss producing spending on its metaverse division and refocus its attention on its cash making core businesses, this is a stock that could have more upside from here. On the date of publication, Chris MacDonald has a LONG position in META .

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