Meta Slashes 10% of Workforce to Invest Billions in AI
Meta has announced plans to reduce its workforce by approximately 10%, equating to about 8,000 jobs. This decision marks another chapter in the ongoing trend of layoffs across the technology sector, which many attribute to advancements in artificial intelligence.
Layoffs and Role Reductions
The job cuts are scheduled to take effect on May 20. Alongside this reduction, Meta will also close around 6,000 open positions. Janelle Gale, Meta’s Chief People Officer, stated in a memo that these changes are part of the company’s initiative to enhance efficiency while balancing investments in new technologies.
Massive Investments in AI
Meta is investing significantly in artificial intelligence, having spent $72.2 billion on capital expenditures in 2025. This figure is expected to rise to at least $115 billion in 2026, as detailed in its January earnings report. The funds focus on developing data centers and bolstering AI infrastructure.
- 2025 Capital Expenditures: $72.2 billion
- Projected 2026 Capital Expenditures: At least $115 billion
The company is also acquiring leading AI startups and hiring top talent for its superintelligence lab to enhance its competitive edge against firms like OpenAI. Despite these investments, Meta’s shares dipped over 2% on Thursday.
Industry-Wide Layoffs
The trend of workforce reductions is not isolated to Meta. Other major companies are also making significant staff cuts. For instance, Amazon announced it would lay off 16,000 employees earlier this year, emphasizing the need for operational efficiency. Additionally, fintech firm Block revealed plans to cut 40% of its workforce, impacting over 4,000 jobs.
As the tech industry faces rapid changes due to AI advancements, Meta’s CEO Mark Zuckerberg has hinted at potential workforce changes. During the January earnings call, he noted that 2026 might be a pivotal year for AI’s impact on work processes. Projects previously requiring large teams might now be handled by a single, skilled individual.
Employee Support and Historical Context
To support employees affected by the layoffs, Meta will provide U.S. workers with 16 weeks of base pay, plus two additional weeks for each year of service. Similar redundancy packages will be offered to international employees. This round of layoffs follows a series of job cuts over the past two years, which the company attributed to adjusting after heightened hiring during the COVID-19 pandemic.
In 2022 and 2023, Meta laid off thousands of workers as part of a strategy to streamline operations. Last year, the company indicated it would reduce about 5% of its workforce, focusing on performance-based cuts while planning to refill many positions.
