- META PLATFORMS
- 16 March 2026 14:33:10
Source: Sharecast
According to a Reuters report late on Friday, citing three sources familiar with the matter, Meta is looking to offset costly artificial intelligence infrastructure bets and prepare for greater efficiency brought about by AI-assisted workers.
No date has been set for the cuts and the magnitude has not been finalised, the sources told Reuters.
It was understood that top executives have recently signalled the plans to other senior leaders at Meta and told them to begin planning how to pare back.
"This is speculative reporting about theoretical approaches," Meta spokesperson Andy Stone said in response to questions from Reuters about the plan.
If Meta settles on the 20% figure, the layoffs will be the company's most significant since a restructuring in late 2022 and early 2023 that it dubbed the "year of efficiency." It employed nearly 79,000 people as of 31 December, according to its latest filing.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the job cuts could drive earnings upside.
"Meta shares have opened higher this afternoon following reports that the company could cut around 20% of its workforce, with the market once again welcoming the chance of a renewed focus on efficiency. By our estimates, a reduction of that scale could add a touch over 15% to 2026 EPS as operating expenses are streamlined," he said.
"We’ve seen before that investors tend to reward Meta when it leans into cost discipline, and this could be another example of management prioritising profitability alongside longer‑term growth ambitions.
"With delays to some of its next‑generation AI models, headcount reduction is one area where Meta can take the bull by the horns and deliver tangible margin and earnings upside while its AI teams work towards the next wave of innovation.
"Meta’s valuation was already attractive, layer in a meaningful earnings boost from AI efficiency gains and an associated headcount trim, and this is looking like a compelling entry point."
At 1415 GMT, the shares were up 3.3% at $633.27.