Mark Zuckerberg, CEO of Meta Platforms Inc (NASDAQ: META), is expanding the company's board by introducing two new directors following the departure announcement of Sheryl Sandberg, a significant figure at Meta.
Broadcom Inc's (NASDAQ: AVGO) CEO, Hock E. Tan, and John Arnold, co-founder and co-chair of Arnold Ventures, a philanthropy-focused private investment firm, are set to join Meta's board.
Zuckerberg expressed enthusiasm for the new additions, highlighting their contributions to Meta's long-term vision, especially in developing artificial general intelligence (AGI) with their extensive silicon and energy infrastructure knowledge, Bloomberg reports.
With these appointments, the board will grow to 11 members, including the outgoing Sandberg, who has played a pivotal role for over a decade and is scheduled to leave during Meta's annual shareholder meeting in May.
Despite the expansion, Meta's unique stock structure, featuring super-voting shares, ensures Zuckerberg retains control over the company with a voting power exceeding 60%.
Tan's relationship with Meta predates his board membership, as Broadcom, under his leadership, has engaged in significant transactions with Meta, including a deal exceeding $500 million last year for various products and services.
In a strategic pivot from rapid expansion to prioritizing efficiency and shareholder value, tech giants like Amazon.Com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Microsoft Corp (NASDAQ: MSFT), and Meta Platforms Inc (NASDAQ: META) are implementing smaller-scale job cuts and cost control measures despite a recovery in their businesses and stock prices.
This shift reflects a broader industry trend towards doing more with less, with companies reallocating resources to focus areas such as generative AI and implementing tighter budget controls.
For instance, Meta recently trimmed its workforce slightly after reporting its highest quarterly revenue in over a decade, signaling a move from the previous growth-at-all-costs model towards a more disciplined operational approach.
The sector has 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.