In a move reflecting the evolution of Meta Platforms Inc’s strategic direction, CEO Mark Zuckerberg announced the appointment of two new directors to the company’s board. This follows the departure announcement of long-time figure Sheryl Sandberg, a significant development for Meta.
Broadcom Inc’s CEO, Hock E. Tan, and John Arnold, co-founder and co-chair of Arnold Ventures, are set to bring their expertise to Meta’s board. This news aligns with Meta’s reinvigorated focus on artificial general intelligence (AGI), leveraging the extensive silicon and energy infrastructure knowledge of the new appointees, according to Bloomberg.
Expressing enthusiasm for the new additions, Zuckerberg highlighted their potential contributions to Meta’s long-term vision, particularly in their role in developing AGI.
These appointments will enlarge the board to 11 members. Outgoing Sandberg, who has played a pivotal role for over a decade, is scheduled to make her departure during Meta’s annual shareholder meeting in May.
Despite the expansion, Meta’s unique stock structure, featuring super-voting shares, ensures Zuckerberg retains control of the company with a voting power exceeding 60%.
Notably, Tan’s relationship with Meta predates his board membership, as Broadcom, under his leadership, has engaged in significant transactions with Meta. Last year, the companies struck a deal exceeding $500 million for various products and services.
This move is emblematic of a strategic pivot in the tech industry from rapid expansion to prioritizing efficiency and shareholder value. Giants such as Amazon.Com Inc, Alphabet Inc, Microsoft Corp, and Meta Platforms Inc are implementing smaller-scale job cuts and cost control measures despite experiencing a business recovery and stock price increase.
This shift reflects a broader industry trend towards doing more with less, where companies are reallocating resources to focus on areas such as generative AI and implementing tighter budget controls.
For instance, Meta recently downsized its workforce slightly after reporting its highest quarterly revenue in over a decade, signaling a shift from the previous growth-at-all-costs model towards a more disciplined operational approach.
The sector has collectively laid off 141,516 employees in the first half of 2023.
Price Action: META shares traded higher by 2.77% at $486.37 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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