On Monday, a leading tech giant, Meta conveyed a filing to the U.S. Securities and Exchange Commission (SEC). In the filing, the firm announced its intention to offer debt securities in one or more series. However, it promised to initiate a new “prospectus supplement” whenever it sells debt securities. According to Meta, the prospectus supplement will entail detailed information and teams of the sold securities.
Through the filing, the tech giant also explain how it aims to offer the debt securities. As stated, it wants to ensure that the offering is sold through underwriters, dealers, brokers or agents, as specified at each period. More so, Meta will also explore selling the offerings to purchasers directly or a combination of both methods. However, it is worth mentioning that the firm did not disclose the exact value of the debt securities it intends to offer in the filing.
Recent layoff by Meta
Meanwhile, this filing by Meta comes barely a few months after it dismissed 13% of its workforce. As reported by Binbits, the CEO of the firm, Mark Zuckerberg announced the layoff in his letter to affected employees. Our findings show that 11,000 of its workers were affected by the layoff. Then, Zuckerberg said the layoff was a measure geared towards cutting costs in the firm. Shortly after the announcement, he revoked access to the company’s systems by affected employees. Also, the CEO announced several relief packages to cushion the effect of the dismissal on them.
The Meta CEO lamented the implication of the prevailing macroeconomic inflation on the firm. According to him, the downturn negatively impacted the revenue of the firm. This thus necessitated the company to adjust its resources to a smaller priority growth areas. Some of these areas are AI discovery engine, ads platform and its presence in the metaverse sphere.
Before firing the workers, Meta published its earning report. The report, according to findings, show that the firm suffered not less than $4 million loss in its metaverse unit. Occasioned by this development, the tech giant believed taking a bold step to cut cost will put the firm on the right track. As part of its drive to cut cost, it embarked on its biggest layoff. Beyond this, Meta also extended its ban on hiring.