Meta Platforms (META), the social media and tech giant, is set to start a new round of job cuts this week. The cuts are set to affect about 8,000 roles, or close to 10% of its staff.
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New trading tool for AMZN bullsThe move comes as Meta tries to keep costs tight while it pours more cash into AI. The company also scrapped plans to fill 6,000 open roles, based on an April memo.
This marks a sharp shift from Meta’s tone in late 2022, when CEO Mark Zuckerberg said he had made a wrong call by hiring too much during the Covid boom. At the time, he told staff, “I got this wrong, and I take responsibility for that.” Now, the message is more direct. Meta told staff that the cuts are “part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making.”
Meanwhile, META shares dropped slightly on Friday, closing at $614.23.
AI Spending Takes Center Stage
The key point seems to be clear. Meta is cutting jobs while raising its AI spend. Last month, the company lifted its 2026 capex view by as much as $10 billion, with spend now seen as high as $145 billion.
That puts Meta in the same broad lane as other large tech firms that are trimming teams while they build more AI power. Cisco Systems (CSCO), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Netflix (NFLX) are also part of a tech market where AI is reshaping both costs and staff plans.
Meanwhile, morale inside Meta appears to be under strain. Reports indicate that more cuts may come later this year, with one round possible in August and another in the fall. That has added to the staff’s concern.
A new internal tool has also raised fresh worries. CNBC said Meta’s Model Capability Initiative tracks worker actions, such as mouse movements and keystrokes, to help train AI agents for coding and office tasks. Some staff called the tool “dystopian,” while a worker petition warned that this kind of data use raises “serious concerns around privacy, consent, and trust in the workplace.”
From a market angle, the story is now a trade-off between a major AI buildout while keeping its cost base lean. If AI spend starts to drive clear growth, the cuts may look like a tough but useful reset. However, if morale continues to decline and the AI plan remains unclear, Meta may face more pushback from both staff and the market.
Is Meta Stock a Buy or Sell Right Now?
Turning to the Street, Meta Platforms has a Strong Buy consensus. Of the 34 analysts’ ratings, 30 rate the stock a Buy, while four rate it a Hold. The average META stock price target is $829.97, implying a 36.69% upside from the current price.
