This company got a boost after Reuters reported it was cutting __% of its workforce to balance out __ spending

• A. Meta, 20, AI
• B. Microsoft, 15, cloud
• C. Google, 25, hardware
• D. Amazon, 5, logistics

Answer: (A)

The idea being tested is how a big move like cutting a large portion of the workforce to free up money for a strategic priority—here, AI spending—can influence how investors view the company. Reuters reported that Meta planned to cut 20% of its workforce to balance out AI spending, so this pairing fits the description and would be seen as a clear signal of reallocating resources toward a high-priority area while tightening other costs. The combination shows a disciplined approach: reduce headcount to fund ambitious AI initiatives, which markets often interpret as balancing growth bets with cost control, potentially boosting the stock fireline because it suggests better long-term profitability if AI drives returns.

The other options don’t match the particular scenario described—different companies paired with different spending areas aren’t the Reuters report in question, and their numbers don’t align with a notable, sizable workforce cut intended to fund AI.