Meta Stock Falls as Zuckerberg Admits AI Restructuring Errors, June 13

Meta stock fell 0.25% to $566.98 on June 13 after CEO Mark Zuckerberg admitted the company made mistakes during its AI workforce transformation. In an internal memo, Zuckerberg ruled out company-wide layoffs this year but acknowledged ongoing challenges as the company reshapes operations around artificial intelligence. Meta cut 10% of its global workforce in May and shifted 7,000 employees toward AI roles while spending $125-145 billion on capital investments.

Zuckerberg Acknowledges Missteps in AI Pivot

Mark Zuckerberg told employees that Meta made mistakes during its rapid AI transformation, according to an internal memo. The company is now focusing on stability rather than aggressive restructuring. Zuckerberg promised no major company-wide layoffs this year, though Meta will continue creating new roles and offering team transfers where possible.

Meta is also rolling back some manager oversight changes based on employee feedback and boosting budgets for internal events. The company plans to hold a July hackathon to engage staff during the transition. These moves signal an attempt to stabilize morale after the May restructuring.

May Layoffs Reshaped Workforce Toward AI

Meta cut approximately 8,000 employees, or 10% of its global workforce, in May. The restructuring simultaneously shifted 7,000 workers into AI-related positions. This dual approach created disruption as some employees survived layoffs but lost their teams and titles.

The company is now managing internal AI costs after spending approached billions of dollars in 2026. Meta imposed spending controls on employee AI usage to curb expenses. The company continues investing hundreds of billions in AI infrastructure despite acknowledging execution problems.

Stock Performance and Analyst View

Meta stock traded at $566.98 on June 13, down 0.25% for the day. The stock has fallen 14.1% year-to-date and 18.2% over the past year. Meyka rates the stock B+ with a neutral recommendation, while 57 analysts rate it Buy versus 6 Hold and 1 Strong Buy.

Meyka’s 12-month price target stands at $705.00, suggesting 24% upside from current levels. The RSI indicator at 34.10 shows oversold conditions, and the stock trades near its 50-day average of $622.07. With analyst consensus favoring the stock and Meyka’s B+ grade, the data suggests limited downside risk despite near-term restructuring challenges.

Capital Spending Continues Despite Setbacks

Meta accelerates its $125-145 billion capital spending push to reshape operations around artificial intelligence. The company views this investment as essential to compete in AI despite the restructuring mistakes. Zuckerberg warned of ongoing challenges as AI evolves rapidly, suggesting the company expects continued volatility in execution.

Final Thoughts

Meta’s stock decline reflects near-term restructuring pain, but analyst consensus and Meyka’s B+ rating suggest the market sees value ahead. The company’s $125-145 billion AI investment and 24% upside target indicate confidence in long-term execution despite current missteps.

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