Meta Q2 Profit Falls 14% as Severance Costs from Layoffs and Legal Expenses Weigh on Results

NewsData.io · United States · Jul 29, 2026

Meta Platforms reported a 14% decline in Q2 2026 net income to $15.85 billion, despite revenue surging 28% to $60.8 billion, as $1.18 billion in severance expenses tied to roughly 8,000 layoffs announced in May and $2.4 billion in legal charges hit the bottom line. The company's total headcount stood at 75,472 as of June 30, down 1% year-over-year, with the full layoff figure to be reflected in Q3 results. Free cash flow collapsed 91% to $784 million, and Meta raised its full-year expense outlook to $165–$169 billion. The results are a concrete signal of large-scale workforce reduction activity at one of the tech sector's major employers.