Meta to cut 10% of staff as Facebook owner pivots to AI

Meta Platforms is preparing to lay off about 10% of its workforce – roughly 8,000 employees – in one of its largest job cuts in recent years, as the social media giant ramps up spending on artificial intelligence and data infrastructure.

According to an internal memo from Chief People Officer Janelle Gale, the layoffs are scheduled to begin on May 20, with affected staff notified on the same day. The company will also eliminate around 6,000 open roles, effectively tightening hiring alongside the cuts.

The move reflects a broader shift in Meta’s cost structure as it channels billions of dollars into AI development. The company said earlier this year it expects capital expenditure to reach between $115 billion and $135 billion in 2026 – almost double the $72.2 billion spent in 2025 – primarily to fund data centres and advanced AI systems tied to its “Superintelligence Labs” initiative.

“We’re doing this as part of our continued effort to run the company more efficiently and to offset the other investments we’re making,” Gale said in the memo, acknowledging the cuts would affect employees who had made “meaningful contributions” to the company.

The planned layoffs follow earlier rounds of job cuts across recruiting, sales and social media teams, as well as reductions of about 10% within Meta’s Reality Labs division, the unit behind its metaverse push. That strategy has absorbed tens of billions of dollars in recent years with limited commercial payoff, increasing pressure on the company to reallocate resources.

AI Pivot

Meta has since pivoted aggressively toward AI, competing with rivals such as OpenAI and Google in developing next-generation models and consumer-facing tools. The company recently unveiled new AI products as part of that push, underscoring the scale of its transition.

The layoffs are expected to extend beyond May, with further reductions possible in the second half of 2026, according to earlier reports. For employees, the delay in notifications adds uncertainty. “I know this leaves everyone with nearly a month of ambiguity,” Gale wrote, noting that more details would be shared closer to the implementation date.

A Meta spokesperson confirmed the accuracy of the internal memo but declined further comment, according to U.S. media reports.

The cuts highlight a growing trend across Big Tech: even as revenues stabilise, companies are reshaping their workforce to fund capital-intensive bets on artificial intelligence—often at the expense of existing roles.