-- Meta Platforms (META) may disclose more layoffs later this year as the technology giant looks to boost operational efficiency through artificial intelligence, Wedbush Securities said in a note.
Meta is laying off roughly 8,000 employees, about 10% of its workforce, to improve efficiency and help it cover other investments, Bloomberg News reported Thursday, citing a memo sent to the company's employees.
In addition, the Facebook parent will no longer hire for about 6,000 open roles, according to the report. Meta spokesperson Tracy Clayton confirmed the content of the Bloomberg article.
Meta is likely targeting a leaner operating structure by leveraging AI tools to automate tasks, Wedbush analysts including Dan Ives said in the note on Thursday.
"While this number represents a significant cut to its workforce, we note that additional layoffs could come later this year," Ives wrote.
Shares of Meta, which also owns WhatsApp and Instagram, rose 3.3% in Friday trade.
Meta said in January it expected capital spending at $115 billion to $135 billion in 2026, driven by increased investment to support the Meta Superintelligence Labs efforts and its core business. Meta has seen a series of job cuts over the past few months, including a 10% workforce reduction within Reality Labs, Wedbush said.
"While we acknowledge investor concern around management's intent to invest more deeply this year, we believe the company is taking a more intentional approach, and this cycle is more disciplined than Meta's investment thesis four years ago," Ives said.
Meta is scheduled to release its first-quarter results on April 29.
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