Meta Plans Major Layoffs Amid Shift to AI Development

Meta Inc., led by Mark Zuckerberg, is preparing to dismiss around 10% of its workforce as part of a sweeping reduction effort scheduled for next month. Reports indicate that this action will be the first wave of layoffs, with more cuts anticipated throughout the year.

The initial round, which is aimed at about 8,000 employees, is slated for May 20th. Additional reductions may occur later in the year, though Meta’s leadership has yet to finalize specifics on timing or the number of jobs affected.

According to sources, the company’s strategy might change depending on developments related to its artificial intelligence initiatives, suggesting some uncertainty about the path forward.

As Zuckerberg reallocates resources to prioritize AI, it seems the stakes are high. In a bid to keep up with competitors like Anthropic and OpenAI, Meta’s projected capital spending is set to rise by $135 billion in just this year.

Last month, reports surfaced that the company might eliminate over 20% of its staff throughout 2026—potentially impacting around 15,000 individuals. This would represent the most significant round of job cuts since the earlier reduction of more than 20,000 positions during Zuckerberg’s previous “Year of Efficiency” initiative.

A spokesperson for Meta previously dismissed the initial reports as speculative and based on a hypothetical plan. Despite the looming layoffs, Meta’s shares saw a near 2% uptick in trading on Friday.

As of the end of December, the social media giant employed about 79,000 people globally.

Zuckerberg has been introducing AI across the company’s operations, even developing a “photorealistic” 3D avatar of himself to engage with staff.

The impending layoffs reflect a broader transformation the tech industry is experiencing as it adapts to advancements in AI technology.

In a similar vein, Snap recently reduced its workforce by roughly 1,000, with CEO Evan Spiegel highlighting that AI could help streamline tasks and enhance support for various stakeholders.

Meanwhile, Block, a financial tech company, announced significant layoffs, affecting 40% of its staff due to a shift towards full AI adoption.

Block’s CEO, Jack Dorsey, noted in an open letter that many organizations will soon come to similar conclusions and implement structural changes—emphasizing a proactive approach rather than a reactive one.

Last fall, Amazon also made headlines for slashing 30,000 corporate positions while integrating AI to improve efficiency.