Meta is set to cut 10% of its workforce next month as it invests heavily in artificial intelligence (AI).
The US technology giant, which owns social media sites such as Facebook and Instagram, told employees in an internal email that the major round of redundancies is to be made on May 20.
Meta had just under 79,000 employees at the turn of the year, meaning the cuts are likely to affect nearly 8000 people. In addition, some 6000 vacant positions will not be filled.
Meta’s head of people, Janelle Gale, acknowledged in the email that employees face four weeks of uncertainty, but said the company was forced to announce the plans early due to leaks.
The reason given for the redundancies was a desire to make the tech giant more efficient and balance expenditure.
Meta is investing heavily in AI infrastructure. For this year alone, capital investments of between US$115 billion and US$135 billion have been promised.
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Meta has already warned investors that its 2026 expenses will grow significantly – to the range of US$162 billion to US$169 billion – driven by infrastructure costs and employee compensation, particularly for the AI experts it’s been hiring at eye-popping pay levels.
Wedbush analyst Dan Ives welcomed Meta’s cuts in a note to investors on Thursday.
Ives said he sees it as part of a strategy of using AI tools to “automate tasks that once required large teams, allowing the company to streamline operations and reduce costs while maintaining productivity driving an increased need for a leaner operating structure.”
with AP
