META Stock Rises Premarket As Meta Reportedly Plans 10% Job Cuts This Week

• Meta also plans to move 7,000 employees to new initiatives related to AI workflows.
• Several tech companies, including Amazon, Snap, Cisco, Oracle and Pinterest, have recently cut thousands of jobs.
• On Stocktwits, the retail sentiment for META remained ‘bullish.’

Meta Platforms’ stock rose 0.2% in early premarket trading on Tuesday, after reports outlined a massive reorganization that it expected to kick off tomorrow.

Meta plans to announce company-wide layoffs on Wednesday, impacting 10% of its workforce or about 8,000 workers, as well as organizational changes aimed at improving the company's AI workflows, Reuters reported, citing an internal company memo.

META’s Org Changes

The memo was from Meta’s Chief People Officer, Janelle Gale, and also informed employees that the company plans to move 7,000 employees to new AI workflows initiatives and eliminate managerial roles. In addition, "many leaders will announce ​org changes," she reportedly wrote.

Meta employed 77,986 workers as of March this year.

"As org leaders worked on the changes, many of them incorporated AI native design principles ⁠into their new org structures. We're now at the stage where many orgs can operate with a flatter structure with smaller teams of ​pods/cohorts that can move faster and with more ownership," Gale wrote.

Some of the transfers have already happened, while in other cases, employees will be notified on Wednesday, ​Gale said. Employees in North America were told to work from home on Wednesday, according to the Reuters report. Meta has also closed an additional 6,000 open roles as ‌part of ⁠the process.

Job Cuts Across Tech

The forthcoming cuts at Meta would be the latest in a broader wave of tech layoffs, with Amazon, Snap, Cisco, Oracle, and Pinterest among companies trimming headcount as AI improves operational efficiency and firms redirect resources toward AI-focused initiatives.

Meta famously eliminated over 20,000 roles in 2023, which CEO Mark Zuckerberg called the “Year of Efficiency,” and has continued to target cuts in the years that followed.

Retail View On META

On Stocktwits, the retail sentiment for META remained ‘bullish,’ unchanged since last week. 

“$META I know they’ve overpaid, but really feel bad for Meta employees right now. Zuck has AI psychosis and should probably be pushed out before he destroys the company,” a trader wrote, expressing frustration by the aggressive management decisions.

META shares declined in the last two sessions and are down 7.3% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.