Meta Platforms announced Thursday it will reduce its global workforce by approximately 10%, cutting roughly 8,000 positions starting May 20 in what CEO Mark Zuckerberg described as a restructuring to eliminate redundancy and accelerate the company's transition to an AI-first organization. The cuts are the largest at Meta since the 2022 "Year of Efficiency" layoffs and will span engineering, operations, and mid-level management roles across all major divisions.
In a memo to employees, Zuckerberg said the company will also forgo hiring for more than 6,000 open positions that had already been budgeted. The combined effect reduces Meta's planned headcount by roughly 14,000 positions, freeing capital for what Zuckerberg called "the most consequential infrastructure investment in the company's history."
AI Spending Doubles to $135 Billion
Meta's capital expenditure guidance for 2026 stands at $115–$135 billion, essentially doubling the $72 billion the company spent in 2025. The lion's share will flow into Meta Superintelligence Labs and into massive data-center expansions across North America, Europe, and Southeast Asia. In the first quarter alone, Meta spent $22.14 billion on infrastructure.
Analysts at Wall Street firms were divided on the announcement. Bulls argued the layoffs underscore disciplined capital allocation and that Meta's AI investments will generate enormous returns through advertising personalization and new revenue streams. Bears worried that cutting human capital while ramping AI spending signals management desperation rather than strategic clarity.