Meta confirmed on Thursday that it will lay off nearly 8,000 employees on May 20, about 10 percent of its workforce, as part of a broader efficiency drive tied to surging AI investments.
The announcement, delivered in an internal memo by Chief People Officer Janelle Gale, came after weeks of speculation following leaks to the press. Gale told staff the cuts would allow Meta to “offset the other investments we’re making,” though she did not specify which areas would benefit. The company also said it would not fill approximately 6,000 open roles it had planned to hire for this year.
Meta’s stock dipped $3.73 on the news, closing at $659.15 after opening at $662.88. The layoffs mark the deepest round since 2023, building on two smaller cuts earlier this year that removed around 2,000 workers. Despite those reductions, Meta had resumed hiring and ended 2025 with staffing levels near pre-layoff totals.
The timing underscores a strategic pivot. In January, Mark Zuckerberg told investors that AI was driving a “major acceleration,” forecasting that 2026 would see the technology “dramatically change the way that we work.” He cited examples where single employees using AI tools now accomplish projects that once required entire teams. This week, Meta began requiring employees to log their computer interactions to help train AI models — a move one worker described to the BBC as “dystopian” amid the looming job cuts.
The scale of Meta’s AI spending underscores the tradeoff. In its fourth-quarter 2025 earnings presentation, Zuckerberg revealed plans to invest between $115 billion and $135 billion in AI — nearly double the company’s capital expenditure from the prior year. Microsoft, which announced parallel workforce reductions the same day, is also boosting AI spending, with analysts estimating its annual outlay at $110 billion to $120 billion.
Microsoft’s approach differs in tone: it offered voluntary retirement packages to employees whose combined age and years of service reach 70 or more, a threshold that qualifies over 8,000 of its U.S. Staff. Meta, by contrast, is implementing involuntary layoffs, though Gale emphasized that affected workers would receive “generous severance packages.”
The contradiction at the heart of the announcement is palpable. While Meta frames the cuts as necessary for efficiency, Zuckerberg has openly stated that AI is making certain hires unnecessary — a sentiment echoed by Microsoft’s AI chief, Mustafa Suleyman, who believes AI could replace most white-collar work within 12 to 18 months. Yet the company is simultaneously investing billions to build the very systems that may render those roles obsolete.
Here’s not the first time Meta has reshaped its workforce in response to technological shifts. After its 2022 layoff wave — which eliminated over 11,000 jobs — the company rebuilt its ranks through aggressive hiring, only to now reverse course as AI maturity accelerates. The pattern reflects a broader industry recalibration, where productivity gains from automation are being weighed against human cost in real time.
Why is Meta laying off employees while investing heavily in AI?
Meta says the layoffs are intended to improve efficiency and offset the costs of its AI investments, which are projected to reach $115–135 billion in 2026. Executives argue that AI tools are increasing individual productivity to the point where smaller teams can handle workloads that once required larger groups.
How do Meta’s layoffs compare to Microsoft’s actions on the same day?
While Meta is cutting nearly 8,000 jobs involuntarily, Microsoft announced voluntary retirement offers for employees whose age plus years of service total 70 or more — a group exceeding 8,000 U.S. Workers. Both companies cite AI-driven productivity gains as justification for workforce changes.
What has been the employee reaction to Meta’s AI monitoring policy?
One employee described the new requirement to log computer interactions for AI training as “dystopian,” particularly given the timing amid widespread layoffs. The BBC reported this comment as reflective of growing unease over workplace surveillance in the name of AI development.
Is this Meta’s largest round of layoffs to date?
No. The upcoming cuts, affecting just under 8,000 employees, are Meta’s largest since 2023 but smaller than the 2022 layoff wave, which eliminated tens of thousands of jobs across multiple rounds.