Popular analyst says that layoffs at Mark Zuckerberg’s Meta could trigger a “wave of panic” as competitors…

Mark Zuckerberg may not have the best AI models in the game right now—but he might be winning the AI race in a way nobody expected. That’s the view of Bernstein analyst Mark Shmulik, who said this week that Meta’s reported plans to cut up to 20% of its workforce could actually be a sign the company is pulling ahead, not falling behind.

The note comes after Reuters first reported on Friday that Meta is preparing sweeping layoffs—potentially affecting more than 15,800 of its roughly 79,000 employees—as the company looks to offset the staggering cost of its AI bets and build a leaner, AI-first organisation.