Meta Platforms to Downsize Workforce Amidst Increased AI Investments
Meta Platforms announced on Thursday its plans to lay off approximately 8,000 employees, which represents 10% of its workforce. This decision comes as the company intensifies its focus on artificial intelligence investments while striving for greater operational efficiency.
The layoffs, set to commence on May 20, will coincide with the removal of 6,000 open positions, as revealed in an internal memo distributed to employees. Meta CEO, Mark Zuckerberg, had hinted at these changes during the company’s January earnings call, predicting that 2026 would be “the year that AI starts to dramatically change the way that we work.”
These job cuts are occurring as Meta significantly escalates its AI spending. The capital expenditure guidance for 2026 is estimated to be between $115 billion and $135 billion—almost double the $72 billion spent in 2025. The company is channeling these substantial investments towards AI model development, infrastructure buildout, and the creation of chatbot products.
Meta’s restructuring mirrors similar trends in the tech industry. For instance, Microsoft has announced voluntary buyouts for up to 7% of its U.S. workforce, and Amazon has eliminated 16,000 positions earlier this year. Affected U.S. employees will receive 16 weeks of base pay, in addition to two weeks for every year of employment.
Source: CNBC