Meta to Cut 10% of Workforce as AI Spending Soars

Meta Platforms has announced plans to cut approximately 10% of its global workforce; about 8,000 employees, as the tech giant ramps up massive investments in artificial intelligence.

According to internal memos and multiple reports, the layoffs are scheduled to begin around May 2026 and will also include the cancellation of roughly 6,000 open roles, signalling a broader restructuring effort within the company.

The move is part of Meta’s strategy to improve operational efficiency while redirecting resources toward AI development, including data centres, infrastructure, and advanced machine learning systems. The company is expected to spend as much as $115 billion to $135 billion on AI-related projects this year alone.

Although the internal memo did not explicitly state artificial intelligence as the sole reason for the layoffs, executives have repeatedly emphasized AI as a central priority, with leadership pointing to increased automation and productivity gains reducing the need for large teams.

The decision comes amid a wider trend across the tech industry, where companies are cutting jobs while aggressively investing in AI capabilities. Firms like Microsoft and Amazon have also made similar workforce reductions as they pivot toward automation and next-generation technologies.

Affected employees are expected to receive severance packages and additional support, including extended health benefits and career assistance, as the company navigates what insiders describe as another phase of restructuring following earlier layoffs.

The announcement has raised fresh concerns about the growing impact of artificial intelligence on employment, particularly in white-collar sectors, as companies increasingly prioritize efficiency and automation over workforce expansion.