META Stock Price Surges Despite Report of 8,000 Job Cuts

Meta Platforms shares moved higher even as a report said the company is preparing a new round of layoffs. Meta stock closed at $688.55, up $11.68, or 1.73%, on the day. In after-hours trading, the stock was at $686.97, down $1.58, or 0.23%. The move kept investor focused on how markets are responding to cost cuts and artificial intelligence plans at the Facebook and Instagram parent.

Meta intends to begin the first wave of this year’s layoffs on May 20. The report, citing three sources familiar with the plans, said the company could cut about 10% of its global workforce in the initial round, or close to 8,000 employees. More layoffs could follow in the second half of the year, although the size and timing of later cuts have not been finalized.

Layoff Report Puts Meta Workforce in Focus

Meta employed nearly 79,000 people as of December 31, according to its latest filing. Based on that figure, a 10% reduction would remove a large number of positions from the company’s global staff base. Meta was considering cuts of 20% or more of its workforce this year.

The company declined to comment on the timing or size of the reported cuts. Executives may still adjust those plans as they assess changes in artificial intelligence capabilities. That leaves room for further changes in the company’s staffing strategy as the year continues.

This would be Meta’s largest workforce reduction since its restructuring during late 2022 and early 2023. At that time, the company cut about 21,000 jobs during what it called its “year of efficiency.” The earlier round came during a weaker period for the business, when growth assumptions from the pandemic period had come under pressure.

AI Spending and Restructuring Remain Central

Meta is now in a stronger financial position than it was during that earlier restructuring phase. The company generated more than $200 billion in revenue last year and posted a $60 billion profit, even while spending heavily on artificial intelligence. CEO Mark Zuckerberg has been directing large investments toward AI as Meta reorganizes key parts of its business.

In recent weeks, the company has reshaped teams in its Reality Labs division and moved engineers into a new Applied AI organization. That group is focused on building AI agents that can write code and complete more complex tasks on their own. Reuters also reported that some employees may be moved into Meta Small Business, a unit created last month as part of the wider restructuring.

Meta is not the only large U.S. company adjusting staff levels while increasing AI spending. Reuters said Amazon has reduced about 30,000 corporate roles in recent months, while Block cut nearly half of its staff in February. In both cases, executives linked the changes to efficiency gains from AI.

Why META Stock Rose Despite the Report

META stock rose even as the layoff report circulated, suggesting that investors are placing more weight on margins, cost discipline, and AI-driven restructuring than on the near-term headline around job cuts. Markets have often treated workforce reductions at large technology firms as part of broader efforts to improve efficiency and support long-term spending priorities.

The stock’s advance also came with Meta already holding a positive start to the year. Meta shares were up 3.68% since the beginning of 2026, though still below the record high reached last summer. Friday’s close at $688.55 added to that year-to-date gain and showed that traders remained focused on the company’s earnings power and AI positioning.

Layoffs across the tech sector have remained elevated this year. According to the report, 73,212 workers had lost their jobs so far in 2026. For all of 2024, the reported total was 153,000. Against that backdrop, Meta’s reported plans fit into a broader industry trend as companies reshape operations around artificial intelligence while investors keep watching revenue, profit, and execution.