Polymarket traders are forecasting a 67% likelihood that U.S. tech sector layoffs in 2026 will exceed those of 2025, driven by reports of declining morale at Meta. The prediction market highlighted Meta's internal struggles, including a significant drop in employee morale ahead of planned job cuts on May 20, as indicative of broader industry challenges. Meta plans to cut approximately 8,000 positions, representing 10% of its global workforce, and freeze 6,000 open roles. This move comes as the company increases spending on AI infrastructure. Despite a 33% year-over-year revenue increase to $56.3 billion in Q1, Meta's shares fell 10% following an upward revision of its 2026 capital expenditure forecast to between $125 billion and $145 billion. Polymarket's contract, which resolves based on U.S. Bureau of Labor Statistics data by June 2027, reflects broader concerns about tech layoffs, with traders citing recent cuts at LinkedIn, Cisco, Cloudflare, Coinbase, and Oracle. The contract remains open until February 28, 2027, allowing for shifts in sentiment as industry dynamics evolve.