Meta Platforms (NASDAQ:) shares surged in premarket trading on Monday, March 16, 2026, climbing 3.23% to $633.01 after closing the prior session at $613.71, a drop of 3.83% on Friday when the layoff news first broke. The catalyst behind Monday’s premarket rebound is a Reuters exclusive report revealing that Meta is planning sweeping layoffs that could affect 20% or more of its nearly 79,000-person workforce.
The planned cuts are being driven by the company’s need to offset ballooning artificial intelligence infrastructure costs, which include a staggering $600 billion data center investment commitment through 2028. Investors appear to be interpreting the restructuring news as a positive signal for long-term profitability and operational efficiency, even as the human cost of the reductions remains significant.
Meta’s Sweeping Layoff Plans: What We Know
According to three sources familiar with the matter who spoke to Reuters, Meta’s top executives have already begun signaling the restructuring plans to other senior leaders, instructing them to start planning how to pare back their teams. The potential cuts have not been finalized in terms of timing or exact magnitude, and Meta spokesperson Andy Stone called the report “speculative reporting about theoretical approaches.”
Still, the scale being discussed, 20% or more, would represent the company’s most dramatic workforce reduction since its high-profile “year of efficiency” restructuring in late 2022 and early 2023. That prior restructuring saw Meta cut 11,000 jobs in November 2022, roughly 13% of its workforce at the time, followed by another 10,000 cuts just months later.
The current round under consideration would surpass both of those rounds combined in proportional terms. CEO Mark Zuckerberg has been openly signaling a shift toward leaner operations, noting in January that he was already seeing projects that once required large teams being completed by a single highly talented individual empowered by AI tools.
The layoff plans reflect a broader trend sweeping through the U.S. tech sector. Amazon (NASDAQ:) confirmed approximately 16,000 job cuts in January, representing close to 10% of its workforce, while fintech firm Block (NYSE:) eliminated nearly half its staff, with CEO Jack Dorsey explicitly crediting AI’s growing capability to help companies operate with smaller headcounts. Meta’s restructuring, if confirmed at the 20% threshold, would be one of the most aggressive workforce reductions among major tech firms this cycle.
META Stock Brief: Premarket Surge and Key Metrics
META shares were trading at $633.01 in premarket as of 5:20 AM EDT on March 16, 2026, up $19.83 or 3.23% from Friday’s closing price of $613.71. Friday’s session saw the stock fall 3.83%, or $24.47, as markets initially digested the Reuters report with uncertainty. The stock’s 52-week range spans $479.80 to $796.25, meaning shares remain well below their peak and offer significant upside if analyst targets are achieved, the consensus 1-year price target sits at $862.25, with the high estimate reaching $1,144.
From a fundamentals perspective, Meta’s financial profile remains robust despite the near-term turbulence. The company reported trailing twelve-month revenue of approximately $200.97 billion, net income of $60.46 billion, and a profit margin of 30.08%. Earnings per share came in at $23.51 on a diluted basis, and the company holds $81.59 billion in total cash. The stock trades at a trailing P/E of 26.13 and a forward P/E of 20.58, suggesting the market is pricing in continued earnings growth.
Analyst sentiment remains broadly bullish on META despite the recent volatility. The top-rated analyst on the stock, Guggenheim, carries a Buy rating with a score of 81 out of 100. The next earnings date is estimated for April 29, 2026, when investors will be looking for clarity on both the AI spending trajectory and the status of any workforce reductions.
Analysts anticipate a recovery in free cash flow by 2027 and potential dividend increases by 2030, reinforcing the long-term constructive view even as near-term costs from AI infrastructure continue to weigh on sentiment.
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