Meta Posts Record Q3, Cuts 600 AI Jobs

Meta reported a strong Q3 with record revenue of about $51.2 billion (up 26% YoY) and continued user growth, but earnings per share fell to $1.05 after a roughly $16 billion one-time noncash tax charge (EPS would have been about $7.25 excluding that hit). The company cut approximately 600 employees from its AI Superintelligence Labs — including parts of FAIR and AI infrastructure teams — as part of a strategic reorganization while encouraging redeployment within Meta. Meta raised its 2025 expense outlook to roughly $116–118 billion, increased 2025 capital spending to about $70–72 billion, and warned 2026 capex will be “notably larger” as it ramps AI infrastructure and hires costly AI talent. Investors reacted poorly, with shares tumbling roughly 7–11% in premarket/after‑hours trading and some firms downgrading targets, though others defended Meta's positioning citing strong ad growth, high margins and monetization opportunities in Reels, Threads and WhatsApp. The results and guidance indicate Meta is simultaneously streamlining some AI teams while making large AI investments to prioritize projects amid competitive and macro pressures.