Meta Platforms (NASDAQ:META) will reportedly start its first round of mass layoffs on May 20, cutting about 8,000 employees, or roughly 10% of its global workforce, with further reductions expected later this year, as CEO Mark Zuckerberg accelerates an AI-focused restructuring.
The specifics of the cuts have not yet been finalized, Reuters reported on Friday, citing sources familiar with the plans. The sources disclosed that the company’s executives may adjust their plans as they observe developments in artificial intelligence capabilities.
Meta did not immediately respond to Benzinga‘s request for comment.
Zuckerberg Bets Big On AI Amid Leaner Operations
Zuckerberg is investing heavily in AI to transform the company’s operations, aligning with a broader trend among major U.S. companies, particularly in the tech sector.
Despite Meta’s significant layoffs in 2022 and 2023, the company’s stock was struggling at the time. However, it is currently in a more stable financial position. Meta’s shares have risen by 5.86% since the beginning of the year.
The impending layoffs at Meta have been a topic of discussion for some time. In March, the company hinted at significant workforce reductions to fund large-scale AI investments while tightening operating costs.
Meta, the parent company of Facebook and Instagram, is also dealing with internal challenges, as some employees have raised concerns about job security. A post on the anonymous forum Blind, allegedly written by a Meta engineer, pointed to increasing internal competition and a growing belief among employees that layoffs are unavoidable. "I'm done with tech," the post stated.
Goldman Sachs Flags Long-Term Worker Risk
Amid the layoffs in the tech industry, the prediction market is betting on whether 2026 will see more layoffs than 2025. Data from Kalshi, a federally authorized betting platform, shows that over $14.6 million has been bet on the contract “More tech layoffs in 2026 than in 2025?”
In early April, a new analysis by Goldman Sachs (NYSE:GS) warned that AI-driven job displacement could impose lasting financial setbacks on affected workers, including pay cuts and slower career growth.
Some analysts, however, argue that many tech layoffs reflect post-pandemic overhiring corrections rather than genuine AI-driven displacement.
Stock Performance
Meta has a market capitalization of $1.74 trillion, with a 52-week high of $796.25 and a 52-week low of $479.80.
The large-cap stock is up 37.30% year to date.
Price Action: According to Benzinga Pro data, META closed at $688.55 on Friday, up 1.73%.
Benzinga’s Edge Stock Rankings highlight that META has a Growth score of 84.11.
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