Industry

Meta to Lay Off 10% of Staff in May

Meta plans to cut around 10 percent of its workforce in May, affecting about 8,000 employees, according to a company memo. The layoffs aim to offset heavy investments in AI, including data centers and talent hiring. The company also plans to close 6,000 open positions amid rising capital spending projected at $115 billion to $135 billion for 2026.

Neura News

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Neura Market Editorial

April 23, 20263 min read

Originally reported by theverge.com

Meta to Lay Off 10% of Staff in May

Meta to Lay Off 10% of Staff in May

Meta will reduce its workforce by about 10 percent next month. A memo from chief people officer Janelle Gale, shared by Bloomberg, outlines the plan. This move affects roughly 8,000 employees. The company also intends to eliminate around 6,000 open positions.

Reasons for the Layoffs

These staff reductions come amid Meta's major push into artificial intelligence. The firm has spent heavily to recruit leading experts and construct data centers. In January, Meta projected capital expenditures between $115 billion and $135 billion for 2026. That marks a sharp rise from the $72.22 billion spent in 2025. Officials say the funds support Meta Superintelligence Labs and core operations.

Gale explained the decision in her memo. She stated Meta is taking this step to operate more efficiently. The goal is to balance other ongoing investments. She called it a tough choice. It involves parting with employees who delivered strong results at the company.

Meta spokesperson Tracy Clayton verified the Bloomberg account. She offered no additional details.

Timeline and Employee Impact

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Employees facing cuts will learn their status on May 20. Gale acknowledged the uncertainty this creates. She noted it brings a month of unease for staff. Details remain limited until later in May as planning continues.

Reuters reported last week on the May 20 target date. Sources there indicated more reductions in the second half of 2026. Back in March, Reuters cited considerations for cuts reaching 20 percent or higher.

Recent Layoff History

This follows earlier job cuts at Meta. Earlier this year, the company let go of hundreds in recruiting, social media, and sales groups. It also trimmed about 10 percent from its Reality Labs unit.

Meta, known for platforms like Facebook, Instagram, and WhatsApp, has navigated cost pressures amid ambitious tech goals. Founded in 2004 by Mark Zuckerberg, the company employs tens of thousands worldwide. Its AI efforts include open-source models like Llama and infrastructure to compete with rivals such as OpenAI and Google. These investments reflect a broader industry trend where tech giants balance growth spending with efficiency drives. Layoffs have hit multiple firms as they prioritize high-cost areas like AI over other functions.

The May cuts align with that pattern. Meta's leadership sees them as necessary to sustain innovation without unchecked expansion. Employees notified on May 20 will receive details on severance and support, though specifics await finalization.

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