Meta to Cut 8,000 Jobs in May While Boosting AI Spending to $135B

Meta plans to reduce its workforce by approximately 8,000 employees, or about 10% of its total staff, beginning May 20. This decision arrives as the company commits significant capital to artificial intelligence, reflecting a strategic pivot in its operational priorities.

The company forecasts 2026 capital spending to reach between $115 billion and $135 billion. This substantial investment primarily targets the expansion of its AI infrastructure and the recruitment of specialized talent in the field. Chief People Officer Janelle Gale stated that the layoffs aim to run the company more efficiently, balancing this goal with ongoing technological investments.

These job cuts, which also include eliminating roughly 6,000 open positions, mark a significant adjustment for the social media giant. Meta concluded 2025 with 78,865 employees. This current round of reductions represents the most substantial workforce change since the "year of efficiency" in 2022 and 2023, when the company cut approximately 21,000 jobs.

Meta's financial position remains robust, reporting $200.97 billion in revenue and $60.46 billion in net income for 2025. However, total expenses are projected between $162 billion and $169 billion for 2026, underlining the scale of its AI ambitions. The company is reorganizing its engineering teams around AI agents—software designed to automate complex tasks—reassigning staff to a new Applied AI division and a small-business group.

This strategy mirrors a broader trend within the tech industry. Other major players, including Amazon and Block, have also recently announced substantial workforce reductions, citing increased efficiency driven by AI integration. Meta's stock experienced a 2.3% dip following the news, though its profitability remains strong.

The coming months will demonstrate how effectively Meta integrates these advanced AI systems into its operations. Observers will track if the substantial investments and workforce adjustments deliver the expected gains in productivity and cost savings. This period will be crucial for assessing the long-term impact of its renewed focus on AI.