Meta Raises 2026 CapEx to $125-145B, Cuts 8,000 Jobs
Meta Platforms reported a 33% year-over-year first-quarter revenue increase to $56.3 billion but alerted investors with a 2026 capital expenditure guidance revision to $125-145 billion, driving shares down roughly 10%. The company plans to eliminate approximately 8,000 roles (10% of staff) and froze 6,000 openings as morale hits historic lows.
1. First-Quarter Results and 2026 Guidance
Meta Platforms delivered first-quarter revenue of $56.3 billion, a 33% year-over-year increase, and raised its 2026 capital expenditure forecast to $125 billion–$145 billion, signaling elevated investment in AI infrastructure.
2. Workforce Reductions and Employee Morale
The company will cut roughly 8,000 positions, about 10% of its global workforce, and impose a hiring freeze on 6,000 open roles as internal morale reaches historic lows under intensified performance reviews tied to AI output targets.
3. Stock Reaction and Market Sentiment
Shares plunged about 10% after the revised CapEx guidance, while prediction markets now price a 67% probability of broader tech sector layoffs in 2026, underscoring investor concerns over rising costs and industry restructuring.
4. Trump Portfolio Adjustments
In first-quarter disclosures, President Trump sold $5 million–$25 million of Meta shares in peak-valuation brackets but executed smaller purchases of $1,000 to $500,000 throughout early 2026, reflecting a reduced yet ongoing stake.