Meta to cut 10% workforce as AI spending surge drives overhaul

Meta Platforms, Inc. plans to lay off about 10% of its workforce, or roughly 8,000 employees, as the social media giant looks to streamline operations and offset rising costs tied to its aggressive push into artificial intelligence.

The company disclosed the move in a memo sent to employees on Thursday, Bloomberg reported, stating that the layoffs will take place on May 20. In addition to workforce reductions, Meta said it will no longer fill around 6,000 open roles it had previously planned to hire for.

The cuts come as Chief Executive Officer Mark Zuckerberg ramps up investment in AI talent and infrastructure, including large language models and chatbot development.

The company has already projected record capital expenditures this year and has struck multiple multibillion-dollar deals with AI partners in recent months.

Layoffs tied to efficiency and AI investment

Meta framed the job cuts as part of a broader effort to improve efficiency while redirecting resources toward strategic priorities.

“We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” wrote Chief People Officer Janelle Gale in the memo reviewed by Bloomberg.

The company has also encouraged employees to integrate AI tools into their workflows, including using AI agents for coding and other internal tasks, reflecting a deeper shift toward automation across operations.

Meta had nearly 79,000 employees at the start of the year, meaning the planned cuts represent one of its most significant workforce reductions in recent years.

Employee uncertainty ahead of May layoffs

The announcement follows weeks of speculation among employees, as earlier rounds of job cuts had already impacted divisions such as Reality Labs and other teams.

Gale said the company chose to confirm the layoffs earlier than planned after details of the restructuring leaked publicly.

“I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances,” Gale wrote.

Employees affected by the layoffs will be notified on May 20 via email. The company said it will provide severance packages that include 16 weeks of base pay in the US, plus two additional weeks for every year of service.

Meta will also cover COBRA healthcare costs for US employees and their families for 18 months, along with offering career and immigration support.

The company acknowledged that the period leading up to the layoffs could be unsettling for staff, noting that further details will be shared closer to the implementation date.

Broader industry cuts reflect shifting priorities

Meta’s decision comes amid a broader wave of workforce adjustments across industries as companies grapple with rising costs and increased investment in AI.

Microsoft Corporation on Thursday offered voluntary retirement buyouts to around 7% of its US workforce, or roughly 8,750 employees, marking the first program of its kind at that scale.

The initiative targets employees at the senior director level and below whose combined age and years of service total 70 or more.

Meanwhile, KPMG LLP is cutting about 10% of its US audit partners as part of efforts to improve productivity and align staffing with business needs under new leadership.