Meta to Cut 8,000 Jobs as AI Spending Reaches $135bn
Meta announced plans to reduce its staff by 10%, which amounts to around 8,000 employees, starting next month. The social media company shared this in a memo to workers on Thursday. It also intends to leave thousands of open positions unfilled.
The layoffs stem from higher expenses in key areas, especially artificial intelligence. Meta expects to allocate $135 billion to AI this year. That figure matches the total AI spending over the past three years combined, based on details from the memo seen by a source.
A Meta spokesperson verified the job reductions but offered no additional details.
Zuckerberg Signals AI-Driven Changes
In January, Meta's co-founder and CEO Mark Zuckerberg hinted at more staff cuts this year. He highlighted how employees using AI tools extensively show much higher output. One individual can now finish tasks that once needed a full team, he observed.
Zuckerberg stated, "I think that 2026 is going to be the year that AI starts to dramatically change the way that we work."
Meta, known for platforms like Facebook, Instagram, and WhatsApp since its founding in 2004 by Zuckerberg and others, has pivoted sharply toward AI in recent times. This shift aims to compete in developing advanced models and tools, catching up to rivals like OpenAI and Google.
Earlier Reports and Employee Reactions
Reuters reported last week that Meta might eliminate over 10,000 jobs this year. Bloomberg first covered the Thursday memo to staff.
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The company has already dismissed about 2,000 workers in two prior rounds this year. Staff anticipated larger reductions, as prior BBC coverage noted.
This week, Meta notified employees it would monitor their computer interactions to refine AI models. One worker described the step as "dystopian," especially with layoffs approaching. That employee told the BBC, "This company has become obsessed with AI."
Broader Tech Layoff Wave
Meta has conducted multiple layoff rounds since 2022, removing tens of thousands of positions. It resumed hiring afterward, returning employee numbers to pre-cut levels last year. These upcoming cuts mark the biggest since 2023.
Similar actions hit other tech companies pouring funds into AI infrastructure. Amazon dismissed more than 30,000 staff. Oracle cut over 10,000. Smaller firm Block eliminated nearly half its workforce, exceeding 4,000 jobs. Snap let go of about 1,000 employees.
On Thursday, Microsoft extended voluntary buyout offers to thousands of long-serving workers.
Executives at these firms often point to AI's expanding role or rising investments as reasons for needing fewer people. Amazon, the e-commerce and cloud leader founded in 1994, leads in AI via services like AWS. Microsoft, established in 1975, integrates AI across its software and cloud offerings. Oracle specializes in databases and enterprise software, while Block (formerly Square) handles payments, and Snap runs the Snapchat app.
This pattern reflects how AI development demands massive resources, prompting workforce adjustments across the sector.