Meta Layoffs
Meta up nearly 3% in premarket on 'speculative' report of planned layoffs to offset AI spending
Meta is planning capital expenditure of up to $135 billion in AI-related costs in 2026, which raised investors' fears around unsustainable spending.
Meta shares jump after Reuters report on plans for layoffs of 20% or more
Meta Platforms shares rose 3% on Monday following a Reuters report that the social media giant plans to lay off 20% or more of its workforce to offset heavy spending on artificial intelligence and bet on productivity gains from the technology. If Meta settles on the 20% figure, the cuts will be the biggest since a late 2022 and early 2023 restructuring it dubbed the "year of efficiency", which eliminated around 21,000 jobs. After falling behind in the AI race, Meta has spent heavily in recent years to catch up by building data centers and waging a talent war.
Meta reportedly considering layoffs that could affect 20% of the company
These layoffs could help Facebook's parent company offset its aggressive spending on AI infrastructure, as well as AI-related acquisitions and hiring.