Meta Slashes 10% of Workforce as $135bn AI Spending Spree Triggers 8,000 Job Cuts
In a memo to staff Thursday, Meta confirmed plans to cut roughly 8,000 jobs while also freezing hiring for 6,000 open positions. The layoffs are set for May 20, 2026.
Chief People Officer Janelle Gale told employees the cuts are part of an effort to “run the company more efficiently” and “offset the other investments we’re making”. Those investments are overwhelmingly AI. Meta expects to spend $135 billion this year on AI development — matching its total AI spend over the previous three years combined. Overall 2026 expenses are projected at $162bn–$169bn, driven by AI infrastructure and high compensation for AI experts.
CEO Mark Zuckerberg signaled the shift in January, saying employees using AI extensively could now complete tasks that previously required entire teams. “I think that 2026 is going to be the year that AI starts to dramatically change the way that we work,” he said.
The company has already carried out two smaller rounds of layoffs earlier in 2026 affecting ∼2,000 workers. This latest cut is Meta’s largest since 2023. At-risk roles include Reality Labs, Facebook’s social division, recruiting, sales, and global operations.
Meta isn’t alone. Microsoft offered voluntary buyouts to ∼8,750 U.S. employees Thursday. Amazon, Oracle, Block, and Snap have also announced major cuts this year, with execs citing AI spending as a key driver. Tech layoffs have topped 73,000 across 95 companies in 2026 so far.
“This company has become obsessed with AI,” one employee told the BBC. Staff also raised concerns over reports Meta will begin tracking employee interactions on work devices to train AI systems.
*Source:* Meta internal memo via Bloomberg; Mathrubhumi; Republic World; CNN; April 24, 2026.
