Meta to Cut 8,000 Jobs — About 10% of Its Workforce — as AI Spending Surges

Meta announced Thursday it plans to eliminate approximately 10% of its global workforce, or around 8,000 employees, in what would be the company's largest round of job cuts since 2023. The reductions are set to begin on May 20, according to an internal memo from chief people officer Janelle Gale viewed by Bloomberg and confirmed by the company.

The cuts arrive as Meta dramatically escalates its artificial intelligence ambitions. In January, the company projected capital expenditures of between $115 billion and $135 billion for 2026, up sharply from $72.22 billion the year before, with much of the increase directed toward Meta Superintelligence Labs initiatives and the data center infrastructure required to support them.

The company is also closing approximately 6,000 open positions that will not be filled.

Gale wrote that the decision is part of an ongoing effort to run the company more efficiently and to help offset other investments being made. Affected U.S. employees will receive 16 weeks of base salary plus two weeks per year of service; international packages will follow a similar structure.

Reuters reported last week that Meta is also planning additional cuts in the second half of 2026, though details have not been finalized.

The layoffs follow earlier reductions in 2026 affecting hundreds of employees across recruiting, media, and sales teams, as well as a roughly 10% reduction in Meta's Reality Labs division. Meta shares fell more than 2% Thursday afternoon following the announcement.

The workforce reduction reflects a broader pattern across the technology industry, where companies including Microsoft have been using AI-driven efficiency arguments to justify headcount reductions even as they pour capital into AI infrastructure at record levels.

Read the original reporting at The Verge.