Meta Platforms Inc. shares rose nearly 3% in premarket trading following reports that the social media company is planning layoffs affecting 20% or more of its workforce.

The reported job cuts come as Meta increases spending on artificial intelligence initiatives, with the layoffs potentially serving to offset higher AI-related costs. The company has been investing heavily in AI technology as part of its broader strategic focus.

Investors appeared to respond positively to news of the potential workforce reduction, with the stock gaining value in early trading. The market reaction suggests shareholders view the cost-cutting measures favorably amid the company's increased AI expenditures.

Meta has not officially confirmed the layoff plans or provided details about the timing or specific departments that would be affected. The company previously conducted significant workforce reductions in late 2022 and spring 2023 as part of broader cost-cutting efforts.

The reported layoffs would represent one of the largest workforce reductions in Meta's history if implemented at the 20% level or higher. The company employed approximately 70,000 people as of its most recent quarterly report.