Meta Faces Backlash as 20% Layoff Report Sends Stock Up 3%
Meta’s stock climbed after reports that the company may cut up to 20% of its workforce, a move tied to its aggressive push into artificial intelligence.
The reaction highlights a growing divide between investor optimism and employee uncertainty as layoffs loom.
According to Reuters and MarketWatch, Meta is considering eliminating roughly 15,000 to 16,000 jobs to offset surging AI costs, with spending projected to reach $135 billion in 2026.
But the plan is not finalized, and Meta has publicly called the reports “speculative,” leaving employees and analysts questioning how real or how soon the cuts could be.
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“This is speculative reporting about theoretical approaches,” a Meta spokesperson said.
The potential layoffs would mark one of the largest workforce reductions in tech since Meta’s own 2022–2023 cuts, signaling a broader shift where companies prioritize AI efficiency over headcount.
Analysts say the move could save up to $6 billion annually and boost earnings, which helps explain why shares rose roughly 2–3% following the reports.
The bigger question now is whether Meta confirms the cuts and whether other tech giants accelerate similar layoffs tied to AI.
For now, the market is reacting faster than the company itself.
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