Facebook Inc will buy back up to $6bn (£4.8bn) of its shares, starting in the first quarter of next year.
The social media behemoth's board of directors authorised the repurchase programme of Class A common stock, which does not have an expiration date, according to filings with the US Securities and Exchange Commission.
Shares were up by around 0.8 per cent in after-hours trading on Saturday, taking the price of its stock to $118 per share, while its market cap was more than $341bn.
Facebook also said its chief accounting officer Jas Athwal had resigned after nine years at the company, effective from February, and that it planned to start a search for a replacement. Athwal was formerly the director of revenue at Yahoo.
This week, the firm was put under intense scrutiny again over accusations it has not done enough to stop fake news being circulated on the platform.
Mark Zuckerberg has repeatedly denied fake news stories on the site had a tangible effect on the outcome of the US presidential election, saying last Sunday "more than 99 per cent of what people see [on Facebook] is authentic".