Meta Announces 10% Workforce Reduction Amid AI-Focused Restructuring

Meta to Cut 8,000 Jobs in Major Restructuring Push

"This is not an easy tradeoff, and it will mean letting go of people who have made meaningful contributions to Meta during their time here."
— Janelle Gale, Chief People Officer

Meta Platforms Inc. has announced plans to reduce its workforce by approximately 8,000 employees — about 10% of its total staff — with layoffs scheduled to begin on May 20. The company will also leave roughly 6,000 currently open positions unfilled. The cuts are part of a broader restructuring effort as the company ramps up spending on artificial intelligence infrastructure and talent.

Workforce Reduction Details

Scope and Timeline

• Approximately 8,000 employees will be laid off, representing roughly 10% of Meta's global workforce.
• Layoffs are scheduled to take effect on May 20.
• Approximately 6,000 open positions will not be filled.
• The company employed nearly 79,000 people as of December 31, 2025.

Announcement and Communication

The announcement was made earlier than planned due to leaks, according to Chief People Officer Janelle Gale. Affected employees were informed via an internal memo from Gale. The company confirmed the memo's contents to multiple news outlets but did not provide additional comment.

Severance and Support

• Affected US employees will receive 16 weeks of base pay plus two weeks for each year of employment.
• International severance packages will be similar.
• Laid-off employees will also receive career support services and immigration assistance if needed.

Company Statements

In the internal memo, Janelle Gale stated:

"These layoffs are part of our continued effort to run the company more efficiently and to allow us to offset the other investments we're making."

She described the news as "unwelcome" and said confirming the information was "the best path forward, given the circumstances."

Strategic Context

AI Investment Focus

Meta has been increasing spending on artificial intelligence infrastructure, with capital expenditures reaching $72.2 billion in 2025 and projected to reach at least $115 billion in 2026. The company forecast total 2026 expenses between $162 billion and $169 billion, primarily driven by infrastructure costs and employee compensation.

Meta has acquired AI startups including Moltbook, a social networking platform for AI agents, and Manus, a startup specializing in AI agents for task automation.

In January, CEO Mark Zuckerberg described the company as "elevating individual contributors and flattening teams," noting that projects previously requiring large teams can now be completed by "a single, very talented person."

AI Model Development

• Meta's superintelligence team is developing a new AI model named Avocado.
• Previous Llama 4 models faced criticism regarding misleading benchmark results, and the largest version, Behemoth, was shelved.
• Subsequent models have reportedly not met internal expectations and have been delayed.

Metaverse and Reality Labs

• In a separate round of layoffs, Meta laid off approximately 1,000 employees from its Reality Labs division, which is responsible for metaverse products, smart glasses, and virtual reality headsets.
• Reality Labs reported nearly $20 billion in losses in the prior year.
• Meta's wearables unit, encompassing AI glasses and augmented reality, is designated as one of the company's key investment areas for 2026.

Previous Workforce Reductions

• Meta laid off 11,000 employees (approximately 13% of its workforce) in November 2022.
• The company cut an additional 10,000 jobs in early 2023.
• Approximately 5% of low-performing employees were cut in the prior year.
• Layoffs also affected the company's recruiting, social media, sales teams, and content moderation services.

Prior Reports and Uncertainty

Multiple news sources reported that Meta was considering more substantial workforce reductions. Reuters reported that Meta was potentially preparing layoffs affecting 20% or more of the company's workforce. A Meta spokesperson described these reports as "speculative reporting about theoretical approaches." The company's executives had instructed senior leaders to begin planning for workforce reductions, though specific dates and final scope were not determined at that time.

Financial and Stock Performance

• Meta reported over $200 billion in revenue and approximately $60 billion in profit for the prior fiscal year.
• Fourth-quarter revenue reached nearly $60 billion.
• Meta shares fell over 2% on the day of the layoff announcement.
• As of the announcement date, Meta's stock was up approximately 3.68% since the start of the year but down from a record high reached in mid-2025.

Broader Industry Context

Similar workforce adjustments have occurred at other major technology companies:

According to the website Layoffs.fyi, over 73,000 employees at technology companies lost their jobs this year, following 153,000 layoffs in the prior year.

Analyst Perspectives

Bernstein analyst Mark Shmulik stated that Meta's deployment of AI across its core business could expand its competitive advantage. He noted that Meta has demonstrated positive returns from integrating AI into key operations and that revenue per employee has steadily increased over the last three years, surpassing Amazon in 2023. He also noted that Meta's capital expenditure and research and development spending per employee have significantly exceeded those of its rivals.

Some industry observers, including OpenAI's Sam Altman, have suggested that some tech company layoffs may represent "AI-washing," where AI is used as a justification for addressing other issues such as over-hiring.

Legal Developments

Meta is facing significant legal challenges:

• A New Mexico jury found that Meta failed to protect young users from child sexual exploitation, with potential penalties reaching $375 million.
• A Los Angeles jury found Meta and Google liable for mental health problems experienced by a woman who used social media as a child, awarding her $6 million.
• Meta plans to appeal both rulings.