Meta Platforms reported its strongest first quarter on record while preparing a workforce reduction tied to AI restructuring. The company posted $56.31 billion in revenue for the quarter, up 33% from a year earlier. It later carried out layoffs affecting about 8,000 workers.
The cuts followed a new equity plan for six senior executives. The awards gain value only if Meta’s share price reaches steep targets before the options expire. Meanwhile, Meta raised its 2026 capital spending forecast as it expands AI infrastructure.
Meta generated most of its first-quarter revenue from advertising. Ad impressions rose 19%, while the average price per ad increased 12%. The company also reported $26.8 billion in net income, although an $8.03 billion tax benefit lifted that total.
After adjusting for the tax item, earnings reached $7.31 per share, above analysts’ $6.79 estimate. Nevertheless, Meta shares fell in extended trading after the report. Investors focused on rising costs, a higher spending plan and weaker user growth.
Meta now expects 2026 capital expenditures of $125 billion to $145 billion. Its earlier range stood at $115 billion to $135 billion. The company said the increase reflects “higher component pricing” and extra data center costs needed for future capacity.
Meta granted 653,865 options to each of six executives in March. The recipients include Susan Li, Andrew Bosworth, Chris Cox, Javier Olivan, Dina Powell McCormick and Curtis Mahoney. Chief Executive Mark Zuckerberg did not receive an award under the plan.
The options carry exercise prices ranging from $1,116.08 to $3,727.12. They expire in March 2031 if executives do not exercise them. At the highest target, each option package could be worth about $625.6 million, according to an Equilar analysis.
Some executives also received restricted stock grants. When those shares are included, Bosworth, Cox and Olivan could each receive about $921.2 million at the top share-price target. Li’s potential total could reach about $786.9 million. Therefore, the $921 million figure does not apply equally to all six recipients.
Meta described the packages as a ‘big bet’ that will pay only if the company achieves large gains for shareholders. Reaching the highest option price would place Meta’s market value above $9 trillion.
Meta began cutting about 10% of its workforce on May 20. Its March headcount stood at 77,986. The company also closed about 6,000 open roles and moved around 7,000 employees into teams focused on AI workflows and internal automation.
Chief People Officer Janelle Gale said Meta aimed “to run the company more efficiently” and offset other investments. The company reorganized teams into smaller groups and removed some management roles as part of the process.
Meanwhile, Oracle’s workforce fell by about 21,000 employees in its latest fiscal year. Oracle said AI adoption formed one part of its restructuring, though management changes, acquisitions and performance issues also contributed.
Still, Nvidia Chief Executive Jensen Huang questioned claims that AI alone explains job losses. He called that explanation ‘lazy’ and said companies should not use the technology as a simple reason for layoffs. Challenger, Gray & Christmas reported that employers cited AI in 87,714 planned cuts through May 2026.
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