Meta Layoffs LIVE updates: ‘Lack of imagination’ – DeepMind CEO refuses to blame AI as Meta slashes 8,000 jobs – Business News

Despite Meta’s aggressive AI expansion, investors appear concerned about the scale of spending.

Meta’s stock has fallen nearly 9% this year, placing the company behind most of the so-called “Magnificent 7” tech firms in annual growth. Only Tesla and Microsoft have performed worse during the same period.

Since Meta released its earnings report in late April, the company’s shares have also dropped nearly 10%.

Analysts at JPMorgan Chase downgraded Meta shares after the earnings report, saying the company faces “a more challenging path to returns” compared to some rivals in the AI race.

Meanwhile, analysts at Bank of America warned that Meta’s strategy may not be sustainable over the long term.

“Meta is investing even more in capacity for AI capabilities, and reducing headcount to make room for added expenses,” the analysts said.

“This AI investment cycle is proving to be bigger than expected, and returns are less clear vs Cloud providers,” they added.

As of March 2026, Meta employed 77,986 workers globally, down from its peak workforce of 86,482 employees in 2022.