Shares of Meta Platforms jumped about 3 percent Monday as investors bet that the reported potential job cuts could help offset the technology company’s artificial intelligence spending. The stock of the company that owns Facebook, Instagram, WhatsApp and Threads closed 2.3 percent higher at USD627.45.
The gain came after a weekend report by Reuters that suggested Meta could slash more than 20 percent of its workforce as it ramps up investment in AI infrastructure. The stock had fallen nearly 4 percent Friday following the initial report, before rebounding as markets digested what such cost cuts could mean for the company’s balance sheet.
According to a Reuters exclusive report that cited unnamed sources, senior executives have asked leaders across the company to prepare plans for significant headcount reductions. A Meta spokesperson told CNBC that the report was “speculative” and described it as a discussion of “theoretical approaches.”
Investors reaction highlights a familiar pattern in Big Tech: Reward companies that trim payroll while plowing capital into high-growth technologies.
Meta employed nearly 79,000 workers at the end of 2025, which means over 15,000 staff could lose their jobs—a number larger the 11,000 jobs cut in 2022 as part of Mark Zuckerberg’s sweeping efficiency drive.
The restructuring could free up funds that Meta may use to bankroll AI capital spending it had estimated could reach as much as USD135 billion this year, roughly double its 2025 outlay.
Meta is not alone in laying off workers to spend more on technology. Companies such as Amazon and Salesforce have also slashed jobs to channel billions into AI, reflecting a broader shift toward leaner, automation-driven operations.
