US social networking giant Facebook (NASDAQ:FB) has announced that it plans to increase its UK workforce by over 50% in 2017.
The latest announcement, made at the Confederation of British Industry conference will see the company hire an estimated 500 new employees. Most will be located in the company’s new London headquarters which is due to open next year.
The company currently employees around 1,000 people in the UK. Many of the new roles will be engineer and developer focused. This will make the UK the company’s largest engineering base outside of the US. Facebook first opened a London office in 2007.
The news follows rival tech giant Google’s announcement that it intends to set up a new London headquarters by 2020. Amazon has also recently announced expansion plans in the UK. All three announcements will be welcomed by British industry following fears that June’s Brexit vote could deter foreign investment in the UK.
Chief executive of the Tech City UK Gerard Grech welcomed the updated. He said “The fact that three of the worlds tech giants are choosing to expand within the UK is a real credit to our tech nation.”
Current London Mayor Sadiq Khan was also quick to comment. He highlighted that this latest news was another vote in confidence for London’s development as a leading tech hub for global businesses.
Facebook has recently been in the news regarding accusations is has not done enough to curb ‘fake news’. Founder Mark Zuckerberg has said it takes such accusations seriously. He has reacently outlined plans to combat the spread of fake news stories on the site.
Shares in Facebook stood at $117.02 at Fridays close.
While the latest news will be welcomes for the UK economy, it is unlikely to have a material impact on the stocks share price. However what it does demonstrate is the continued expansion intentions of the company.
The shares have been on a run this year, however now stand below their high. This was recorded on 24th October when the price hit $133.28. The current market cap stands at 339.24BN,
The brand has huge recognition but has so far struggled to turn this into revenue. Binary Options traders may want to sit out taking a position at present. Confirmation that there is a clear path for revenue generation going forwards is needed.