FirstFT: Meta to freeze hiring as advertising slumps

Facebook’s parent company Meta yesterday announced a company-wide hiring freeze to cut costs as the social media group battles an advertising slump and rising competition.

In an internal memo, seen by the Financial Times, Lori Goler, Meta’s head of people, said the hiring freeze would start today and would apply to external recruitment as well as internal moves.

“Our 2023 budget is going to be very tight across all teams as we try to minimise costs,” Goler warned in the staff memo.

Boom times for technology groups during the coronavirus pandemic have turned, prompting advertisers, Meta’s main source of revenue, to curb their spending.

As part of its cost-cutting drive, Google yesterday announced the closure of its Stadia games streaming service. In a further sign of contraction in the technology sector SoftBank’s Vision Fund, which invests in cutting-edge tech companies, laid off 30 per cent of staff.

Meta has been trying to balance developing its short-form video product, Reels, in order to boost the popularity of its social platforms Facebook and Instagram and compete more effectively with rival TikTok, along with its efforts to build an entirely new digital avatar-filled virtual world called the metaverse.

Have you been affected by the slowdown in the tech sector? Email me at firstft@ft.com or reply to this email. Now for the rest of the day’s news — Gordon

Five more stories in the news

1. Japan deepens US chip alliance US chipmaker Micron is to receive up to $320mn in Japanese government subsidies to fortify supply chains against the disruptive threat from China, it was announced today. The deal follows months of negotiations between the US and Japan that is expected to result in a series of further announcements to expand co-operation in semiconductor production.

2. SEC fines Barclays for $18bn sale error Barclays has agreed to pay $361mn to settle charges that a clerical error led the UK bank to offer for sale $17.7bn worth of structured financial products that had not been registered for sale with the US Securities and Exchange Commission. The regulator called the amount of unregistered securities “unprecedented”.

3. Texts show roll-call of tech figures tried to help Elon Musk with Twitter deal Hundreds of messages released yesterday show how Elon Musk engaged with Twitter’s management and board, his financial advisers, potential investors and random supporters to stitch together the $44bn purchase of the social media platform. In one message, Oracle founder Larry Ellison said he was “in for $2bn”.

4. US pledges $210mn to Pacific Islands to counter China’s influence The promised aid from the Biden administration will help Pacific Island nations tackle issues ranging from climate change and maritime security to economic development. It is Washington’s latest push to counter Chinese activity in the region and comes after Beijing caught the US off guard this year by signing a security pact with the Solomon Islands.

5. Major disaster declared in Florida US president Joe Biden declared a major disaster in Florida yesterday and pledged federal support after Hurricane Ian churned through the state. The hurricane is threatening to tear into South Carolina today, according to the National Hurricane Center, with winds of up to 110mph.

How well did you keep up with the news this week? Take our quiz.

The days ahead

Personal consumption data: The US Federal Reserve’s preferred inflation metric is expected to have accelerated in August, bolstering further the case for continued aggressive interest rate rises. The core personal consumption expenditures price index, which strips out volatile items such as energy and food, is expected to have increased in August by half a percentage point to 4.7 per cent, according to economists polled by Refinitiv.

Monetary policy The US Federal Reserve is holding a conference today on the financial stability considerations for monetary policy, with Fed vice-chair Lael Brainard giving opening remarks. Elsewhere, Fed board governor Michelle Bowman will give a talk at the Institute of International Finance on the supervision of large banks. Richmond Fed president Thomas Barkin will deliver a speech titled “What’s driving inflation” before a local chamber of commerce in Virginia.

Company earnings Cruise operator Carnival will report third-quarter results, with analysts predicting a rebound in revenue as consumers unleashed pent-up demand for travel over the summer.

Russia Vladimir Putin will sign “treaties” in a Kremlin ceremony today to annex four regions in south-eastern Ukraine, none of which Russia fully controls. The Russian president will also make a “substantial speech” during the ceremony, state newswire Ria Novosti reported.

Liz Truss and Kwasi Kwarteng to meet OBR The UK prime minister and chancellor will try to reassure markets they are serious about bringing down Britain’s debt when they meet the official economic forecaster following the extraordinary reaction to last week’s “mini” Budget.

Brazil elections Voters go to the polls in the first round of voting to choose the next president of Latin America’s biggest economy. Polls put former leader Luiz Inácio Lula da Silva well ahead of incumbent Jair Bolsonaro ahead of Sunday’s vote.

What else we’re reading

Strong dollar hits airlines as costs surge The strength of the US dollar is putting new pressure on airlines’ fragile balance sheets, driving up the cost of everything from the fuel used to power their planes to the aircraft themselves. It means airline passengers may be hit further as the carriers try to pass on increasing costs to travellers through ticket prices, writes transport correspondent Philip Georgiadis.

For a fascist revival look to Moscow, not Rome With the victory of the far-right in Italy, there were warnings of a new “Benito Mussolini” era. But to present Giorgia Meloni as a direct line from Mussolini is a journalistic flourish too far, writes Timothy Garton Ash. The real fascists are revealing themselves elsewhere, he argues.

Fiscal fisticuffs between the IMF and Britain The stinging rebuke arrived at the worst moment: with sterling selling off and borrowing costs surging, the IMF urged the UK to “re-evaluate” its £45bn package of debt-funded tax cuts. Did the IMF overstep its remit by weighing in on domestic policy outside a scheduled review?

How to pick winning teams Decision-making is often framed in terms of “art versus science”, with the assumption that in our digital age, the human factor is increasingly marginalised. But in the age of data, in sport as well as life, where does the human dimension fit into making decisions?

Cheating accusations in the chess world US teenager Hans Niemann’s shock victory over world chess champion Magnus Carlsen this month might have been celebrated as the arrival of a new force in the ancient game of strategy. But wild rumours of dirty tricks have started to swirl.

Hong Kong’s expat party continues — but for how long? As she prepares to leave Hong Kong for a move to San Francisco, Tabby Kinder reflects on the ‘dizzying contradictions’ of her time in the city amid political upheaval and Covid. “I have, with deep conviction, recommended living here to friends,” she writes.

Life & arts

Look closely at episode 8 of Industry season 2 and you may see a familiar face: the FT’s own Henry Mance. He writes about how he landed a starring role — or, perhaps more accurately a bit part — in the TV series.