Meta Platforms, Inc (NASDAQ:META) stock was trading lower during Monday’s session as traders weighed plans for workforce cuts tied to the company’s AI spending push.



An April 18 Reuters-sourced report said Meta is discussing roughly 8,000 job cuts starting from May 20.



However, the specifics “have not yet been finalized,” and executives may adjust their plans as they track the development of AI capabilities.



Meta continued reshaping its business around artificial intelligence as CEO Mark Zuckerberg defended aggressive AI spending, workforce reductions, and higher infrastructure investments to position the company for long-term growth in the AI race.



<h2>Meta Prioritizes AI Infrastructure Spending</h2>



Zuckerberg told employees during a company town hall that Meta’s rising AI infrastructure costs are forcing the company to make difficult trade-offs between compute investments and staffing levels.



He said infrastructure and personnel remain Meta’s two largest expenses, adding that increased AI spending requires the company to “take down” headcount to balance costs.



Meta is reportedly preparing to cut about 10% of its workforce beginning May 20, with additional layoffs potentially coming later this year.



<h2>Employees Raise Concerns Over Layoffs</h2>



Meta’s AI-driven restructuring has sparked growing internal anxiety, as employees question their long-term job security.



According to reports, some workers criticized Meta’s shift toward an “AI native” operating structure and tighter productivity tracking initiatives. A post on the anonymous Blind platform, reportedly written by a Meta engineer, described rising internal competition and a belief that further layoffs are unavoidable.



Zuckerberg acknowledged uncertainty surrounding Meta’s long-term workforce strategy, saying he does not have a “crystal ball” for how the company’s AI transformation will evolve over the next several years.



<h2>Meta Raises AI Spending Outlook After Earnings Beat</h2>



Despite restructuring efforts, Meta strengthened its financial outlook after reporting first-quarter revenue of $56.31 billion, topping Wall Street estimates of $55.45 billion. Adjusted earnings reached $7.31 per share, ahead of analyst expectations of $6.78 per share.



The company also projected second-quarter revenue between $58 billion and $61 billion.



Meta CFO Susan Li said the company still does not know its “optimal” long-term size as AI adoption accelerates. Meta maintained its full-year expense outlook of $162 billion to $169 billion while raising its 2026 capital expenditure forecast to between $125 billion and $145 billion to support expanding AI infrastructure investments.



<h2>Earnings &amp; Analyst Outlook</h2>



Looking further out, the next major catalyst for the stock arrives with the July 29, 2026 (estimated) earnings report.



<ul>
<li>EPS Estimate: $7.22 (Up from $7.14 YoY)</li>



<li>Revenue Estimate: $60.19 Billion (Up from $47.52 Billion YoY)</li>



<li>Valuation: P/E of 22.3x (Suggests fair valuation relative to peers)</li>
</ul>



Analyst Consensus &amp; Recent Actions: The stock carries a Buy rating with an average price target of $822.41. Recent analyst moves include:



<ul>
<li>Mizuho: Outperform (Lowers Target to $835.00) (May 5)</li>



<li>Stifel: Buy (Lowers Target to $780.00) (May 1)</li>



<li>JP Morgan: Downgraded to Neutral (Lowers Target to $725.00) (April 30)</li>
</ul>



<h2>Price Action</h2>



META Stock Price Activity: Meta Platforms shares were down 0.81% at $609.24 at the time of publication on Monday, according to Benzinga Pro data.



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Meta (META) stock dipped premarket as CEO Mark Zuckerberg announced plans to cut 8,000 jobs to fund a $145B AI spending initiative. The company reported Q1 revenue of $56.31B, exceeding estimates, and projected Q2 revenue between $58B and $61B. Despite layoffs, Meta raised its capital expenditure forecast for AI infrastructure. Analysts maintain a Buy rating with a price target averaging $822.41. META shares were down 0.81% at $609.24.

- Meta Platforms, Inc (NASDAQ:META) faces potential job cuts of approximately 8,000, starting May 20, as the company prioritizes AI infrastructure spending amidst rising costs.  
- CEO Mark Zuckerberg acknowledged the need for workforce reductions to balance increased AI investments, which has triggered internal anxiety among employees over job security.  
- Despite these challenges, Meta reported strong first-quarter earnings and raised its revenue outlook, with analysts giving the stock a Buy rating and anticipating significant growth in the coming quarters.

What Is Going On With Meta Stock On Monday?