Meta Shares Drop 8% After Q1 Growth, Plans 10% Layoffs
META•Meta plans to cut 10% of its workforce in three batches on May 20, notifying employees at 4 a.m. local time and moving 7,000 staff to AI workflows and eliminating managerial roles. Shares fell 8% after Q1 showed 33% revenue growth, 62% EPS gain and rising AI monetization metrics.
1. Layoff Plan and Workforce Reallocation
Meta plans to reduce 10% of its global workforce in three notification waves on May 20, alerting employees at 4 a.m. local time. The company will shift 7,000 staff into AI workflow initiatives and eliminate specific managerial roles to streamline operations.
2. Q1 Earnings, Stock Reaction and AI Monetization
After reporting Q1 revenue growth of 33% and EPS up 62%, Meta’s shares fell 8%. The company highlighted a $20 billion value optimization suite, a 1.6% conversion uplift from AI features, and trades at 19x forward P/E versus Alphabet’s 22x while boosting capex guidance to $125–145 billion.
