Meta plans to cut 10% of its workforce next month as it invests heavily in artificial intelligence (AI).
The U.S. technology giant, which owns social media sites such as Facebook and Instagram, told employees in an internal email that large-scale layoffs will begin on May 20.
Meta had just under 79,000 employees at the start of the year, so the layoffs could affect nearly 8,000 people. Additionally, approximately 6,000 vacant positions will not be filled.
Janelle Gale, Meta’s director of human resources, acknowledged in an email that employees face four weeks of uncertainty, but said the breach forced the company to announce its plans early.
The reason cited for the job cuts was the tech giant’s desire to increase efficiency and balance spending.
Meta is investing heavily in AI infrastructure. This year alone, between US$115 billion and US$135 billion of capital investment has been committed.
Meta has already warned investors that expenses in 2026 will be in the range of $162 billion to $169 billion, driven significantly by infrastructure costs and employee compensation, particularly for the AI professionals it employs at eye-popping pay levels.
Wedbush analyst Dan Ives welcomed Meta’s cut in a note to investors Thursday.
Ives said he sees this as part of a strategy to use AI tools to “automate tasks that once required large teams, allowing us to streamline operations and reduce costs while maintaining productivity,” noting the need for leaner operating structures is growing.
With AP
