Meta lays off thousands of employees to offset AI investments

Meta notified thousands of employees that planned headcount reductions are intended to run the company more efficiently and offset other investments. Reports of layoffs began circulating in March, when cuts were expected to reach up to 20 percent of total headcount. A May memo indicates the layoffs now affect about 8,000 people, roughly 10 percent of Meta’s 78,000 employees. The layoffs follow Meta’s January forecast of $115 billion to $135 billion in 2026 capital expenditures to support Meta Superintelligence Labs efforts and core business. Meta also moved more than 7,000 staffers to new AI initiatives and closed 6,000 open roles. Laid off employees were thanked for their contributions.

"Meta management told impacted staffers that the planned headcount reduction was part of the company’s “continued effort to run the company more efficiently and to allow us to offset the other investments we’re making.” The message framed the layoffs as a response to broader spending priorities rather than a standalone change, tying reductions to the need to balance ongoing commitments with operational efficiency goals."

"Reports of an upcoming wave of layoffs started circulating in March, though at that time Meta was believed to be cutting up to 20 percent of its total company headcount. According to a recent memo shared in May, the layoffs are now believed to be impacting approximately 8,000 people, around 10 percent of Meta’s 78,000 employees. The memo indicates the scale of the cuts has become clearer over time."

"Meta forecasting in January said it will spend $115 billion-$135 billion in capital expenditures in 2026, which would be used to “support our Meta Superintelligence Labs efforts and core business.” That figure is almost double the $72.22 billion spent by the company in 2025. Alongside cutting active roles, Meta is moving more than 7,000 staffers to work on new AI initiatives, and 6,000 open roles are being closed."

"“We want to say again that we’re grateful for your contributions. Your impact at Meta has been an important part of our story,” Meta said in closing the memo to laid off employees. Some impacted employees posted about being laid off on LinkedIn, showing their Meta employee badges and confirming that the cuts are now underway, including references to being let go alongside “8,000 metamates.”"

Read at The Verge