Meta to cut workforce as AI spending surges
Meta Platforms Inc. plans to lay off around 10% of its global workforce, affecting roughly 8,000 employees, as the company pushes to improve efficiency while ramping up heavy investment in artificial intelligence.
The decision, outlined in an internal memo sent to staff, will take effect on May 20. In addition to the layoffs, Meta will halt hiring for approximately 6,000 open positions it had previously planned to fill, signaling a broader restructuring effort, News.Az reports.
The memo was authored by Janelle Gale, who said the move is aimed at streamlining operations and balancing rising costs linked to AI development. “We’re doing this as part of our continued effort to run the company more efficiently and to offset the other investments we’re making,” she noted.
Chief Executive Officer Mark Zuckerberg has been accelerating spending on AI talent and infrastructure, focusing on building advanced systems such as large language models and chatbots. The company has already projected record capital expenditures this year and entered multiple multibillion dollar partnerships to strengthen its position in the rapidly evolving AI sector.
Internally, employees have been encouraged to integrate AI tools into their daily workflows, including coding and content generation, as Meta shifts toward a more automation driven operational model.
The announcement comes shortly after reports of potential layoffs began circulating in media outlets, prompting the company to confirm the plans earlier than expected. Gale acknowledged the impact on staff, stating that the decision may create uncertainty but is necessary under current conditions.
At the start of the year, Meta employed nearly 79,000 people globally. The company is expected to release its first quarter earnings results next week, where investors will closely watch how AI investments and cost cutting measures affect financial performance.
For affected employees in the United States, Meta will provide severance packages that include 16 weeks of base pay plus an additional two weeks for each year of service. The company will also cover healthcare costs under COBRA for up to 18 months for employees and their families. Compensation packages for international staff will follow similar structures, adjusted to local regulations.
The move underscores a broader trend across the tech industry, where companies are tightening costs while simultaneously increasing spending on artificial intelligence, seen as a key driver of future growth.
By Faig Mahmudov
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