Good morning! Meta announces plans to cut 10,000 jobs in a new round of layoffs. Homeowners who kept a 3% mortgage rate are turning into landlords by renting their properties. Varda Space Industries, aims to develop a manufacturing operation in orbit for drugs and other products that would benefit from microgravity.

TECH

Layoffs Continue at Meta

Meta has announced that it will be cutting around 10,000 jobs in the coming months, marking the Facebook parent’s second wave of mass layoffs in a bid to increase efficiency in a difficult economy.

Here's the breakdown:

• Meta plans to reduce its workforce by about 10,000 jobs in the upcoming months as part of its "year of efficiency," following the previous fall's layoffs, which resulted in roughly 13% of its staff being let go.

• CEO Mark Zuckerberg has cited a more extended economic shift characterized by growing geopolitical tensions, new regulations, and the end of low-interest rates as the rationale for the move.

• The latest rounds of layoffs will affect non-engineering positions and include the cancellation of certain projects, with some wearable devices being removed from Meta's hardware and metaverse division.

• Affected US staff will receive 16 weeks of severance pay, plus an extra two weeks for each year worked at the company, while packages for workers outside the United States will vary.

• According to Layoffs.fyi, the number of layoffs at tech companies has reached nearly 300,000 employees since 2022, while employment in the information sector remained constant between July and January, according to federal data.

ECONOMY

Homeowners Turned Landlords

Homeowners are holding onto their low mortgage rates and becoming "accidental landlords" rather than selling, which is putting pressure on both buyers and sellers in the market.

Here's the breakdown:

• Homeowners are becoming "accidental landlords" rather than selling due to their low mortgage rates.

• Rates have increased from their historic lows during the pandemic housing boom, but homeowners who locked in their rates before or during this period are not selling.

• Goldman Sachs reports that only 1% of borrowers have a mortgage rate higher than the current market rate.

• New listings of homes for sale have fallen by 21.7% YoY as people do not want to give up their low-interest rates.

• Experts advise homeowners to keep their low-interest rates as it is one of the best assets they will ever have, and they will win if fixed rates are below the rate of inflation.

SCIENCE

Drugs Made in Space

Varda Space Industries, a California-based startup, is aiming to revolutionize drug development with its automated drug lab that fits into a space capsule.

Here's the breakdown:

• A space capsule containing an automated drug lab is being developed by Varda Space Industries for low-Earth orbit.

• Varda plans to explore novel therapies for cancer, diabetes, and chronic pain.

• The capsule will be utilized for mixing, heating, and cooling chemical compounds suitable for drug development, which will be returned to Earth as the basis for large-scale pharmaceutical production in traditional factories.

• In June, Varda's first capsule will fly on a SpaceX rocket to test its technology and survival during reentry, eventually landing in the Utah desert via parachute.

• With $53 million raised from investors and a $60 million contract with the US Air Force and NASA, Varda aims to establish a regular manufacturing operation in orbit, with dozens or even hundreds of facilities producing not only drugs but also other microgravity-dependent products.

APPENDIX

• The job market for remote workers is shrinking as more companies shift to hybrid or in-person work, leaving workers in non-technology sectors with fewer options for remote work.

• Sunbelt cities are experiencing soaring traffic congestion due to rapid economic growth, resulting in longer commutes and increased frustration for commuters.

• The sandwich is a staple of the American diet, but according to a new study, it contributes to an unhealthy diet due to high sodium and processed meat content.

• US retail sales increased less than expected in February, despite continued government stimulus and a reopening economy, indicating that supply chain disruptions and inflation concerns may be affecting consumer spending.