Meta's Biggest Layoffs Since 'Year Of Efficiency' Coming? Retail Traders Bet Stock Wins Again

• Meta has yet to set a date for the layoffs, and the quantum might change.
• Meta laid off 20,000 workers as part of its 2023 ‘Year of Efficiency’ drive, which massively boosted the company’s stock.
• Retail traders view fresh layoffs as a positive for the company, forecasting a 10% upside in the stock over the coming days.

Meta Platforms, Inc. is reportedly nearing a decision to cut about 20% of its workforce, or roughly 16,000 employees, in what would mark its most significant restructuring since the company’s 2023 “year of efficiency.”

The social media giant laid off about 20,000 workers in late 2022 and early 2023. The company’s stock returned 194% in 2023, the strongest annual performance on record.

The Mark Zuckerberg-led company is preparing to axe again as it seeks to offset costly artificial intelligence infrastructure bets and prepare for greater efficiency brought about by AI-assisted workers, Reuters reported on Saturday, citing people familiar with the matter. 

If confirmed, the move would lend further credence to the claim that artificial intelligence is displacing jobs, even as some executives argue otherwise. 

Tech Layoffs Rise. Is AI To Blame?

Major tech companies have poured billions into AI-driven features and internal automation tools, which in many cases have resulted in layoffs as firms gain efficiency, deprioritize certain products, and redirect resources toward large capital expenditure projects.

In recent months, Amazon has announced it will lay off 16,000 workers, following sizable cuts at Atlassian and Block. Oracle is largely expected to cut thousands of workers amid massive investments in new data centers.

Source: Stocktwits research, media reports

About 38,645 tech workers have already been laid off by 60 tech companies in 2026, according to data from the corporate layoffs tracker Layoffs.fyi.

META Traders See Upside

On Stocktwits, Meta was the top trending ticker late Sunday, with sentiment at ‘bullish’ levels and most traders deeming the layoffs positive for the company. “Meta will gap up 10% from reducing their HR costs by 20% with the layoff announcement,” said a user.

Meta had 79,000 employees as of the end of last year. The company’s total costs and expenses, which includes salaries, jumped 24% year over year to $117.7 billion in 2025.

“The goal is a lean, AI-assisted workforce where manager-to-employee ratios could hit 1:50,” said a user. “While devastating for staff, the market often rewards this ‘Efficiency 2.0.’ Expect a short-term volatility spike, followed by a potential re-rating if Meta proves it can maintain output with a significantly smaller footprint.”

Meta shares jumped more than 10% in late January after the company posted a strong quarterly report, but have since given up most of those gains amid a broader tech selloff and, more recently, market volatility tied to the U.S.-Iran war. 

The stock is down 7% year-to-date, worse than losses on the S&P 500 and Nasdaq indices, and the fifth-worst performer among the “Magnificent Seven” equities.

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

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