Meta's shares rose by over 2% on Monday after reports emerged that the company could lay off over 20% of its employees to offset rising investment costs in artificial intelligence.
According to Reuters, several executives have requested plans for staff reductions, which led to a nearly 4% drop in shares on Friday.
Meta, which had nearly 79,000 employees at the end of 2025, dismissed the speculation, calling it "speculative reports." A 20% reduction would affect over 15,000 employees and would be the largest round of layoffs since the elimination of 11,000 jobs in 2022. The company is ramping up its investments in AI, planning to spend between $115 and $135 billion by 2026. Other tech companies, such as Block and Amazon, have already announced layoffs to redirect resources towards AI.
Analysts suggest that these cuts at Meta could reflect a broader shift in the tech industry, highlighting the importance of AI as a driver of productivity growth.
Mark Zuckerberg stated that 2026 will be a crucial year for AI development within Meta, aiming to build a "personal superintelligence."
Sources
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