Meta to cut 10% of staff as it pours billions into AI

In a significant move, Meta has announced plans to reduce its workforce by approximately 10%, translating to around 8,000 job cuts. This decision marks yet another wave of layoffs within the tech sector, largely driven by the increasing integration of artificial intelligence into operations. According to Janelle Gale, Meta's chief people officer, the company will also be closing approximately 6,000 job openings. This information was detailed in a memo that Meta confirmed to various news outlets. The layoffs are set to take effect on May 20, as part of a broader strategy to enhance operational efficiency and support the company's substantial investments in AI technology. Meta has been on an aggressive spending spree in the AI domain, with capital expenditures reaching $72.2 billion in 2025. The company forecasts that this figure will surge to at least $115 billion in 2026, as outlined in its January earnings report. The tech giant is not only investing heavily in infrastructure but is also acquiring promising AI startups such as Moltbook and Manus, which are vital in its quest to compete with leaders like OpenAI. Following the announcement, Meta's shares fell by over 2%. This trend of workforce reductions is not isolated; numerous companies have recently announced layoffs, citing AI's potential to enhance efficiency. For instance, Amazon revealed plans to cut 16,000 jobs earlier this year, while fintech company Block indicated a 40% workforce reduction impacting over 4,000 employees, warning that other firms might follow suit. Meta's CEO, Mark Zuckerberg, hinted at the potential for workforce changes due to AI advancements during the company's January earnings call, predicting that 2026 would be a pivotal year for AI's impact on work dynamics. He noted that tasks previously requiring large teams could now be efficiently handled by individual experts. In terms of support for affected employees, Meta plans to provide U.S. workers with 16 weeks of base pay, plus two additional weeks for each year of service. International employees will also receive comparable packages. This move follows significant layoffs in 2022 and 2023, as the company adjusted its workforce after the pandemic-induced hiring surge.