Figma says it’s hiring less because of AI. Wall Street doesn’t seem impressed

Figma, the design software company, has seen its shares plunge more than 14% in early trading due to investors' concerns over its heavy investment in artificial intelligence (AI). The company disclosed in its second quarter earnings report that its operating expenses reached $426.9 million, a significant jump of nearly 100% year-over-year.

Research and development expenses alone accounted for $167.3 million, up from $83.1 million the previous year. However, the firm reported a $117.3 million loss from operations, despite a 48% year-over-year revenue increase to $370.1 million.

In an effort to counteract the negative sentiment, Figma's CFO Praveer Melwani announced during the post-earnings call that the company was hiring fewer employees than originally planned. Melwani credited AI and associated tools for the reduction, stating that it had modernized processes throughout the company. Despite these cost-cutting measures, Figma has raised its 2026 earnings guidance to between $1.463 billion and $1.467 billion, representing a 39% year-over-year growth.

This is an increase from the previous quarter's estimate of $1.422 billion-$1.428 billion, or 35% growth.

However, the company's stock performance has suffered, with Figma's shares down 25% so far this year and a staggering 69% decrease over the past 12 months. Figma went public just over a year ago, making its initial public offering one of the most highly anticipated tech IPOs of 2025.