• BusinessWeek, Friday, November 21, 2008 12:03 PM

As the economic outlook worsens, most Silicon Valley tech startups are cutting costs, but not Facebook, says BusinessWeek. The social networking giant is pressing ahead with aggressive plans for growth. As Facebook investor and board member Peter Thiel says, "This is not the time for tech companies to be cutting back; this is the time to be hitting the accelerator."

What does that mean, exactly? According to the report, Facebook will continue to go to great lengths to keep user growth high in tough times. This means hiring aggressively, hitting the M&A trail (possibly), and continuing to roll out new ad platforms. Despite the site's growing development costs, engineers are working on versions in languages like Xhosa, Tagalong and French Canadian to corner niche audiences. "We're in this game not just for five or 10 years," says Sheryl Sandberg, Facebook's chief operating officer. "We're in it for 20 to 30 years."

Meanwhile, Facebook was recently granted a special exemption from the SEC, one that should help the company with its growth strategy. Usually, when a company exceeds 500 shareholders, the government requires that it start disclosing financial results publicly. Facebook, nearing that threshold, asked for a waiver that would allow it to keep hiring and handing out stock incentives without public disclosure. The company was granted that request on Oct. 14, which will help it reach 800 employees by the end of the year, up from 400 in 2007.

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