Meta will lay off nearly 8,000 employees later this month as the company sharpens its focus on artificial intelligence and operational efficiency. The cuts, expected around May 20, could affect close to 10% of Meta’s workforce. The move comes as the company increases spending on AI infrastructure, including data centers, chips, and large language models.
CEO Mark Zuckerberg said Meta wants smaller teams that can move faster with the help of AI tools. During the company’s recent earnings call, he said engineers using advanced AI systems can now complete work that once required larger teams and longer timelines.
“We’re streamlining our teams so they aren’t bigger than they need to be,” Zuckerberg said while outlining Meta’s restructuring plans.
Meta expects to spend between $125 billion and $145 billion this year, largely on AI-related expansion. The company has been aggressively investing in computing infrastructure amid intensifying competition in the AI race.
Chief Financial Officer Susan Li said Meta is still evaluating what the optimal workforce size should be in an AI-driven environment.
Reports suggest the company has also introduced systems internally to monitor how employees use AI tools in day-to-day work. Automation is increasingly being used across coding, testing, and internal operations.
The latest layoffs add to the large-scale cuts Meta carried out in 2022 and 2023, when the company reduced thousands of jobs as part of its ‘year of efficiency’.
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According to reports, affected US employees will receive 16 weeks of base salary, plus two additional weeks for every year spent at the company. Healthcare coverage for employees and their families will continue for up to 18 months.
Meta has maintained that AI will improve productivity rather than fully replace workers. Still, concerns over job security continue to grow inside the company.
Employee discussions on internal forums reportedly point to declining morale and fears of further layoffs as Meta continues to restructure teams around AI-led operations.