Meta to cut 10% workforce, 8,000 layoffs expected amid $135B AI investment

According to a Reuters story, Meta, which is headed by CEO Mark Zuckerberg, is getting ready to fire about 10% of its employees worldwide in a fresh round of layoffs that will begin next month.

Nearly 8,000 workers may be impacted by the first phase, which is anticipated to start around May 20. Later this year, further layoffs are also anticipated, though the exact number and timing are still up in the air.

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The reorganization coincides with Meta’s increased emphasis on artificial intelligence and substantial investments in the field. According to reports, Meta spent about $135 billion on capital projects this year, primarily to improve its AI skills in order to compete with competitors like Anthropic and OpenAI.

According to sources, the degree of upcoming layoffs may rely on how Meta’s AI initiatives develop, underscoring the increasing connection between automation, efficiency, and personnel reorganization within the organization.

This is not Meta’s first significant layoff. As part of what Zuckerberg referred to as a “year of efficiency” strategy, the business terminated around 20,000 workers in 2022 and 2023. Nearly 79,000 people worked for Meta worldwide as of December 31.

Although the corporation has not formally acknowledged the latest layoffs, a representative has previously referred to such allegations as “theoretical approaches” and dismissed them as speculative.

Despite a tepid response from investors to the most recent reports, Meta’s stock increased by about 2% on Friday.

The proposed cuts are part of a larger trend in the IT sector, where businesses are reorganizing their operations to better incorporate AI. Significant job cuts have also been reported by companies like Snap and Block, who have cited automation and AI-driven productivity increases as the main causes.

AI is starting to play a major role in both internal operations and product development at Meta. According to reports, the business is constructing sophisticated digital avatars, like as a “photorealistic” 3D version of Zuckerberg for employee interaction, and integrating AI techniques across all of its platforms.

The most recent round of layoffs indicates that Big Tech’s priorities are continuing to change, with investment in AI growing quickly while traditional functions are being eliminated.