This article first appeared on GuruFocus.
Meta Platforms (META, Financials) is reportedly preparing another round of layoffs as the company continues shifting resources toward artificial intelligence projects.
The cuts are expected to affect about 8,000 employees, or nearly 10% of Meta’s workforce. The company has also canceled plans to fill roughly 6,000 open positions, according to reports tied to an internal memo circulated earlier this year.
The move comes as Meta sharply increases spending on AI infrastructure and development. The company recently raised its 2026 capital expenditure outlook to as much as $145 billion, underscoring how aggressively large technology firms are investing in artificial intelligence.
Meta said the workforce reductions are part of broader efforts to improve efficiency while supporting long-term investment priorities.
At the same time, reports of additional layoffs later this year and concerns surrounding internal employee-monitoring tools have added pressure on workplace morale.
For investors, the situation reflects the growing balancing act across the tech industry as companies try to control costs while competing in the expensive race to build advanced AI systems.
Wall Street remains largely positive on Meta’s long-term outlook, though investors will likely keep watching whether the company’s massive AI spending translates into stronger growth and profitability.