Meta to Slash 8,000 Jobs on May 20, More Cuts in 2026
Meta is initiating a significant round of layoffs, set to take place on May 20, targeting around 8,000 employees, which constitutes 10% of its total workforce of approximately 78,865. This decision forms part of a broader restructuring strategy designed to realign resources towards artificial intelligence (AI) infrastructure.
Restructuring Overview
The layoffs will affect various departments, including Reality Labs, Facebook’s social division, recruitment, sales, and global operations. There are also plans for additional reductions in the latter half of 2026, although specific details regarding timing and scale have yet to be finalized.
Impact of Previous Cuts
This round of layoffs isn’t the start of the company’s efforts to reduce its workforce. Since 2022, Meta has already eliminated around 25,000 positions, with the latest layoff marking a shift from targeted cuts to a comprehensive restructuring across all major business units.
- November 2022: 11,000 layoffs, correcting pandemic-era over-hiring.
- Early 2023: 10,000 layoffs as part of what Zuckerberg termed the “Year of Efficiency.”
- January 2025: 3,600 performance-based terminations.
Focus on AI Investment
The restructuring effort aims to redirect investment towards AI, with Meta projected to allocate between $115 and $135 billion in this area by the year 2026. This includes significant investments in data centers and GPUs to support AI models.
Leadership Changes and New Structure
Alexandr Wang, the incoming Chief AI Officer and CEO of Scale AI, is leading the new direction. Meta has restructured traditional roles to create positions such as “AI builder” and “AI pod lead,” impacting approximately 1,000 employees to align with this new focus.
Another significant player in this shift is Maher Saba, who heads the Applied AI Engineering division and has outlined plans for a comprehensive overhaul in an internal memo.
Financial Context and Performance Review Changes
Despite these layoffs, Meta’s financial health appears strong. In 2025, the company reported revenue of $201 billion, a 22% increase year-over-year. The stock also rose nearly 10% following a strong fourth-quarter earnings report.
The company has redesigned its performance review system to align employee evaluations with its restructuring goals, focusing on output rather than effort.
Industry-Wide Layoff Trends
Meta’s restructuring mirrors a broader trend within the tech industry, which has seen over 95,000 job cuts across various companies this year alone. Other notable layoffs include Amazon, which cut 16,000 jobs, and Oracle, which eliminated up to 30,000 positions.
As firms face rising costs associated with AI investments while simultaneously reporting record revenues, the approach of cutting headcount to fund infrastructure raises questions about the sustainability of this strategy.
Conclusion
As Meta embarks on these layoffs on May 20, the emphasis on AI investment marks a pivotal turn for the company. For the approximately 8,000 employees affected, this shift signifies immediate and impactful changes in their professional lives.
