Meta CEO Mark Zuckerberg has been working to implement Project OT, an initiative aimed at restructuring the company to prioritize artificial intelligence (AI) technology. According to the plan, AI systems would replace employees' daily work tasks, leading some departments to consider cutting up to 60% of their workforce. However, ultimately, only 10% of the workforce was laid off during May.
A second round of employee reductions was planned but was scrapped due to employee resistance and AI tools failing to perform as expected, according to Reuters. The current suspension of layoff plans demonstrates that management continues to study how quickly AI technology can replace human labor.
Due to these circumstances, Meta's stock price has declined over 10% compared to the beginning of this year. In the second quarter, Meta's operating expenses jumped 55%, reaching $42.03 billion, and investment spending for 2026 is projected to increase from $130 billion to $145 billion. As a result, investors should monitor the critical stock price level of $592 in the short term.
Ref: Yahoo
