When Job Cuts Make Your Boss $7.5 Billion Richer
Nothing says "the market approves" quite like a stock popping on layoff news. Meta Platforms Inc. (META) shares climbed 1.7% Thursday after reports surfaced that the company plans job cuts as early as January, with budget reductions of around 30% targeting its metaverse division. For CEO and co-founder Mark Zuckerberg, who owns roughly 13% of the company, that meant a cool $7.5 billion wealth boost in a single day.
Meta stock closed Wednesday at $661.53, then opened Thursday at $664.50 and peaked at $676.10 before settling at $673.07. The rally continued into Friday as investors digested the news and contemplated what leaner spending might mean for Meta's bottom line.
The Metaverse Dream Meets Reality
Here's the uncomfortable truth behind those stock gains: Meta's metaverse unit has hemorrhaged more than $70 billion since 2021. What was once trumpeted as the company's future—virtual worlds where we'd all supposedly work, play, and hang out—has become a cautionary tale about betting big on unproven technology. Investors have been pressuring the company to rethink this expensive gamble, particularly as adoption rates failed to meet the hype.
The budget cuts and potential layoffs signal Meta is finally listening. By trimming the metaverse fat, the company can redirect resources toward artificial intelligence, where the competitive landscape looks far more promising and immediate.
Zuckerberg's Wealth Rollercoaster
The $7.5 billion Thursday gain pushed Zuckerberg's estimated net worth to $234 billion, according to Bloomberg. He's added $26.3 billion to his fortune year-to-date in 2025, which sounds impressive until you realize he's actually slipped down the billionaire rankings. Zuckerberg finished 2024 in third place with a net worth of $207 billion but now sits at sixth globally as other mega-wealthy individuals have posted even bigger gains this year.
A Pattern of Pruning
These aren't Meta's first layoffs, and they won't be the last. The company cut 600 jobs in October, mostly from its AI division. Earlier this year, performance-based cuts hit multiple departments. And if you really want to see aggressive downsizing, look at 2022 and 2023, when Meta eliminated more than 10,000 employees each year—over 20,000 total.
The shift is clear: Meta is moving resources from virtual reality dreams to AI realities. After years of heavy metaverse investment produced disappointing returns, the company is betting its future on artificial intelligence instead. The latest cuts free up both budget and headcount for AI acceleration.
Where Meta Stands Now
Meta shares traded up 1.5% to $671.30 on Friday, operating within a 52-week range of $479.80 to $796.25. The stock is up 12.0% year-to-date in 2025, suggesting investors are cautiously optimistic about the company's strategic pivot—even if it comes at the cost of thousands of jobs.