Meta Layoff Rumors Boost Stock Price; Reports Suggest Company May Cut At Least 20% of Workforce

Latest reports indicate that Meta Platforms plans to lay off 20% or more of its staff to offset massive spending in artificial intelligence (AI) and bet on AI technology to boost productivity.

Following the news, Meta’s stock price temporarily rose over 3%. When asked whether this report is accurate, a Meta spokesperson said, “This is a speculative report about a theoretical plan.”

As of the end of December 2025, Meta has approximately 79,000 employees.

Analysts note that if Meta indeed cuts 20%, it would be the largest layoff since the company’s restructuring during the “efficiency year” at the end of 2022 and early 2023, which reduced about 21,000 jobs.

Rosenblatt Securities analyst Barton Crockett said that a 20% layoff could save about $6 billion in costs, roughly increasing core profit margins by 5% after adjustments.

Crockett added, “Layoffs may not stop at 20%. If AI truly has such a huge impact on employee productivity, there could be more layoffs in the future.”

In the AI race, Meta, which once lagged behind, has recently invested heavily to catch up, including building data centers and engaging in fierce talent competition. The company expects capital expenditures in 2026 to reach as high as $135 billion, about twice last year’s amount.

These investments aim to ensure the cloud computing capacity needed to train and operate AI models. According to an agreement reached on Monday, Meta will pay cloud service provider Nebius up to $27 billion for related services.

Although these investments have already improved Meta’s advertising tools and increased sales, the company has yet to launch AI models capable of challenging industry leaders like OpenAI, Anthropic, and Google.

It is worth noting that layoffs related to AI are also increasing worldwide. Since November last year, global tech companies have announced over 61,000 AI-related layoffs.

Last month, Block, a fintech company founded by former Twitter CEO Jack Dorsey, announced it would cut nearly half of its staff, as AI is making more jobs automatable.

Some analysts point out that layoffs in the tech industry are also related to over-hiring in the past. OpenAI CEO Sam Altman stated last month that some companies are attributing layoffs that would have happened anyway to AI.

Bernstein analyst Mark Shmulik wrote in a report, “Is AI just a convenient scapegoat to justify layoffs that would have happened regardless? Perhaps.”

“But we believe the market will soon see through companies using AI as a cover,” he added, emphasizing that Meta may be the most capable tech giant to transform into an AI-driven organization, highlighting its successful restructuring after the pandemic.

(Source: Cailian Press)