Meta Plans 8,000 Layoffs While Q1 Revenue Jumps 33%
META•On May 20 Meta will cut 8,000 jobs and remove 6,000 listings to redirect funds toward AI, aligning with tech’s broader 13,000 role reduction last month. In Q1 revenue rose 33% year-over-year and EPS jumped 62%, with ad monetization and AI targeting gains justifying higher CapEx and a forward P/E discount.
1. Layoffs and AI Resource Reallocation
On May 20 Meta will eliminate 8,000 positions and remove 6,000 open job listings as it redirects investment toward artificial intelligence development. This move mirrors sector-wide reductions of 13,000 tech and 11,000 finance roles last month and signals a strategic shift in workforce allocation.
2. Q1 Financial Performance and Valuation
Meta reported 33% year-over-year revenue growth and a 62% jump in EPS for Q1, driven by accelerating ad monetization and AI-enhanced targeting. Management plans to increase capital expenditures to support these gains, with a forward P/E of 19.19 representing roughly a 14% discount to its five-year average.
