(Image source from: Pixabay)
Meta seems to be getting ready for another major change, even though it's still making billions. The organization behind Facebook, Instagram, and WhatsApp is planning to let a lot of workers go, and this time, it could be in the thousands again. A story from Reuters mentioned that Meta might lay off up to 8,000 workers in less than a month. The situation is more complicated because these layoffs are occurring while the company is spending a lot on AI, indicating a shift in focus rather than a slowdown. Below is the complete story outlined in five main points:
A new round of layoffs from Meta may start on May 20: A report from Reuters, which includes sources close to the issue, says that Meta Platforms is set to begin its new layoffs for the year on May 20. During this phase, the firm might eliminate about 10 percent of its entire workforce, which is nearly 8,000 employees. The company had about 79,000 workers at the end of last year, so this will likely affect many teams. Notably, Meta’s careers page shows that there are roughly 582 job openings available right now.
More cuts could happen later in 2026: This might not be a one-time action. The report suggests that more layoffs are anticipated for the latter half of the year, though the specific timing and number are not yet clear. Leaders are reportedly monitoring how AI develops before making further choices, indicating that upcoming cuts might rely on how fast AI changes or takes over certain jobs.
The push for AI is causing major changes: Mark Zuckerberg, the CEO of the company, has been making substantial investments in AI, aiming to change how the company functions internally. Teams are being restructured, engineers are being assigned to new AI-oriented divisions, and the company is creating tools that can write code and handle complicated tasks on their own. The aim is to build a more streamlined organization with fewer management levels and more AI-supported work. "Eventually, all the code in our applications and the AI it creates will be produced by AI engineers rather than human engineers," Zuckerberg stated in early 2025. He has repeated this sentiment multiple times in the last few months as well.
Where is Meta putting all its money? Is AI responsible? : Meta's spending reveals its main focus. The New York Times reports that the company expects to spend between $115 billion and $135 billion (about Rs 9.5 lakh crore to over Rs 11 lakh crore) just for 2026, which is almost double the $72 billion it used last year. This marks a significant rise from $28 billion in 2023 and $39 billion in 2024. A big part of this investment is going into large data centers, including a new AI complex in West Texas that may cost as much as $10 billion. The company has also invested $14.3 billion in Scale AI and has acquired the AI startup Manus for $2 billion. Meanwhile, Meta is reportedly offering pay packages worth up to $100 million to bring in top AI experts for its Superintelligence lab. All of this is possible due to its solid financial performance, which includes over $200 billion in yearly revenue and around $60 billion in profit last year, providing it the funds needed for such bold investments.
Not the first time Meta has significantly reduced jobs: This will be the largest restructuring for Meta since its "year of efficiency" in 2022 and 2023, when it cut about 21,000 jobs. However, the situation is different now. Back then, the company faced slowing growth and had overhired during the pandemic. Currently, Meta is in a stronger financial position but is adapting for a future focused on AI. With many tech firms laying off thousands of workers, it seems they are not only trying to save money but also shifting resources towards AI. Meta’s approach indicates that even successful tech companies are open to reducing their workforce size if it allows them to enhance their progress in the AI competition.
