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Facebook owner Meta to lay off 11,000 staff

Photo: Josh Edelson / AFP

| By AFP | Juliette Michel with Joseph Boyle in Paris |

Facebook owner Meta will lay off more than 11,000 of its staff in “the most difficult changes we’ve made in Meta’s history,” boss Mark Zuckerberg said on Wednesday.

He said the cuts represented 13 percent of the social media titan’s workforce and would affect its research lab focusing on the metaverse as well as its apps, which include Facebook, Instagram and WhatsApp.

The tech industry is in a serious slump and several major firms have announced mass layoffs — Twitter’s new owner Elon Musk fired half its staff last week.

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“I want to take accountability for these decisions and for how we got here,” Zuckerberg said in a note to staff.

“I know this is tough for everyone, and I’m especially sorry to those impacted.”

Ad-supported platforms such as Facebook and Google are suffering with advertisers looking to cut costs as they struggle with inflation and rising interest rates.

Zuckerberg told his 87,000-strong staff he had expected the boost in e-commerce and online activity during the Covid pandemic to continue, but added: “I got this wrong, and I take responsibility for that.”

The measures were also a message to Wall Street, where the company’s poor performance has sent the Meta share price plummeting by 70 percent since the start of the year.

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The move on Wednesday was welcomed by investors with Meta shares showing major gains for the day of nearly six percent just ahead of the closing bell in New York.

The downturn has affected companies across the sector, with Apple and Amazon also recently announcing results that disappointed investors.

But Meta also faces some unique problems of its own.

The California-based company is being squeezed by Zuckerberg’s decision to devote billions of dollars to developing the metaverse, an immersive version of the web accessed via virtual reality headsets.

Zuckerberg renamed the company Meta a year ago to reflect the commitment to the project, but the division working on metaverse technology has since made losses of more than $3.5 billion.

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Facebook is also struggling to fend off Chinese-owned TikTok, the now dominant social media for younger users to the detriment of Meta’s Instagram.

‘Last resort’

Mike Proulx, a research director at Forrester, said “Meta is amidst an identity crises” and that severe cost-cutting was “inevitable.”

“The company has one foot in a risky long-term metaverse bet and another foot failing to compete with TikTok,” he added.

Zuckerberg has hinted several times this year that belt-tightening measures were just around the corner and said in his letter on Wednesday that staff layoffs were a “last resort.”

Meta would also keep a hiring freeze going into next year, he said, and other spending cuts were envisaged.

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“Fundamentally, we’re making all these changes for two reasons: our revenue outlook is lower than we expected at the beginning of this year, and we want to make sure we’re operating efficiently,” Zuckerberg wrote.

In the US, terminated Meta employees will receive four months severance pay and two additional weeks of pay for each year of service. 

Last month, Meta announced profits of $4.4 billion in the third quarter, a 52 percent decrease year-on-year.

The slump in profits comes despite its platforms dominating the world in terms of users — Facebook alone claims to have around two billion people who log on daily.

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International

Stoltenberg calls on the NATO bloc to “urgently” offer anti-aircraft systems to Ukraine

NATO Secretary General Jens Stoltenberg called on the member states of the bloc to offer Ukraine anti-aircraft defense systems or financial support and lamented that “every delay costs lives and damage” in the face of the Russian invasion.

“We are working with all our allies and asking them to provide air defense systems such as the Samp/T or others,” he assured the media upon his arrival at the summit of foreign ministers of the G7 on the Italian island of Capri (south), when asked if other countries, in addition to Germany, could offer ‘Patriots’ to Kiev.

Stoltenberg encouraged the bloc’s allies who cannot provide anti-aircraft systems to the Ukrainian resistance to give it financial support.

In this sense, he stressed that the Netherlands has confirmed a package of 4 billion euros in additional military aid for Kiev, while Denmark has announced a new remittance.

And he celebrated as “an encouraging sign” Washington’s decision, after months of delays, to discuss the approval of other funds for $61 billion, with the commitment of US President Joe Biden to ratify it immediately.

NATO, he said, has given 99% of the aid to Ukraine but if it stops doing so “they will not be able to defend the country.”

“That’s why we have to do more and that’s why we’re here,” said the leader of the Atlantic Alliance, who will meet tomorrow with the Ukrainian president, Volodymir Zelenski.

In his opinion, accelerating aid to Ukraine is “urgent” because “every day delays cost deaths and damage” in that country in the face of a Russia that puts pressure on the defensive lines.

Stoltenberg finally promised “maximum surveillance” in NATO countries against Russian espionage, after the recent arrest in Germany of two men on suspicion of espionage under the orders of Moscow.

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International

The US announces new sanctions against Iran for the attack on Israel

U.S. President Joe Biden announced new sanctions against Iran, directed against its Revolutionary Guard and the Ministry of Defense, for the attack on Israel.

Through a statement signed by the spokesman of the State Department, Matthew Miller, the US Government explained that it is also targeting the unmanned aerial vehicle program, the steel industry and the automobile companies of Iran.

“In response to Iran’s unprecedented attack on Israel, the United States is taking radical measures against several actors involved in Iran’s unmanned aerial vehicle program, suppliers and customers of one of Iran’s largest steel producers and Iranian automotive companies with connections to the United States,” the statement said.

The designated entities are the Islamic Revolutionary Guard Corps (IRGC) and the Ministry of Defense and Logistics of the Armed Forces (MODAFL).

In total, the Treasury Department imposes sanctions on 16 people and two entities that allow the production and testing of Iranian unmanned aerial vehicles, as well as the proliferation of actors working on behalf of the Islamic Revolutionary Guard, its unmanned aerial production division, Kimia Part Sivan Company, and other Iranian manufacturers of unmanned aerial vehicles and unmanned aerial vehicle engines.

The Treasury also sanctions five companies that supply component materials for steel production to the Khuzestan Steel Company (KSC) of Iran, an entity sanctioned by the United States, or that buy finished steel products from the KSC.

In addition, the Treasury sanctions the Iranian car manufacturer Bahman Group and three of its subsidiaries, which have continued to materially support the IRGC and other sanctioned entities.

Finally, the Department of Commerce imposes new controls to restrict Iran’s access to technologies such as basic commercial-grade microelectronics.

“We will continue to work with our allies and partners to use the full range of tools at our disposal to address income flows and disrupt the networks that support Iran’s reckless proliferation of weapons that destabilize the Middle East and beyond,” Miller said.

U.S. Treasury Secretary Janet Yellen said last Tuesday that the United States and its partners were coordinating a new round of sanctions against Iran for the attack on Israel, the first launched by Tehran directly against Israeli territory.

Several countries had previously designated the Revolutionary Guard, a branch of the Armed Forces of Iran created after the Islamic Revolution of 1979, as a terrorist group.

In 2019, the United States included the Revolutionary Guard on the blacklist of terrorist groups, while the Government of Canada already said in January of this year that it was studying ways to include the Revolutionary Guard on its list of terrorist organizations.

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International

Argentina asks to be a “global partner” of NATO

Argentina requested to be a “global partner” of NATO in the framework of a meeting held this Thursday by its Minister of Defense, Luis Petri, and the deputy secretary general of the multilateral organization, Mircea Geoana, official sources reported.

As published by the holder of the portfolio on social network X and disseminated his ministry, Petri presented “the letter of intent that expresses Argentina’s request to become a global partner of this organization.”

“We will continue to work on recovering links that allow us to modernize and train our forces to the NATO standard,” concluded the Argentine Minister of Defense.

Petri accompanied his publication with several photographs – including that of the delivery of the official letter – of his meeting with Geoana in Brussels, where the headquarters of the North Atlantic Treaty Organization (NATO) is located.

Argentina’s rapprochement with NATO is linked to the new foreign policy developed by the Government of the ultraliberal Javier Milei, which has as references the United States and Israel.

In addition to the recent visit to Argentina of the commander of the Southern Command of the United States, Army General Laura Richardson, with a vocation to expand collaboration in defense, the South American country is clearly aligned with Israel both in the war in the Gaza Strip against the armed wing of Hamas and in the recent crisis unleashed with Iran.

Petri is this week in Europe, where on Monday he signed an agreement for the purchase of 24 used F-16 fighter planes from the Danish Army.

Milei was going to travel to Denmark to meet with the Prime Minister, Mette Frederiksen, and celebrate the signing of the agreement, but suspended the visit following Iran’s attack on Israel and returned from the United States – where he had traveled to receive a tribute from a Jewish organization – to organize a “crisis committee” in Buenos Aires.

Argentina keeps in its memory the memory of two serious attacks against the interests of the Jewish community: in 1992 against the Embassy of Israel; and in 1994 against the Asociación Mutual Israelita Argentina (AMIA). Both left more than 100 dead and hundreds of injured.

As its official website shows, NATO has 32 full members. Born after World War II (1939-1945), twelve countries signed their accession in 1949: Belgium, Canada, Denmark, the United States, France, Iceland, Italy, Luxembourg, Norway, the Netherlands, Portugal and the United Kingdom.

They were joined, in various expansions, Greece, Turkey, Germany, Spain, Czech Republic, Hungary, Poland, Bulgaria, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Romania, Albania, Croatia, Montenegro, North Macedonia, Finland and Sweden – the last two incorporations, in 2023 and 2024, respectively, against the background of the war between Russia and Ukraine.

In addition, it has several allies qualified as global partners, the same status that Argentina now intends: Australia, Afghanistan, Iraq, Japan, South Korea, Mongolia, New Zealand, Pakistan and Colombia, the only country in Latin America, admitted in 2017.

Undoubtedly, an important aspect that could generate some internal conflict is the diplomatic dispute over the sovereignty of the Falkland Islands between the United Kingdom – one of the founding members of NATO – and Argentina, which caused a war in 1982.

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