Meta to Lay Off 10% of Workforce Amid AI Shift

Meta Platforms Inc. is set to reduce its global workforce by 10%, impacting around 8,000 employees, as the company shifts its focus towards artificial intelligence (AI) initiatives. The layoffs are scheduled to commence on May 20, with notifications being sent in three batches globally at 4 a.m. local time.

In an internal memo, Meta's head of human resources, Janelle Gale, informed employees that "many leaders will announce org changes" in coordination with the layoffs. As part of this restructuring, the company plans to reassign 7,000 employees to new initiatives related to AI workflows and to eliminate certain managerial roles.

Gale emphasized that many organizational leaders have incorporated AI-native design principles into their new structures, aiming for a flatter hierarchy with smaller, more agile teams. "We believe this will make us more productive and make the work more rewarding," she stated.

This move aligns with Meta's increased investment in AI. The company recently raised its 2026 capital expenditure forecast to a range of $125 billion to $145 billion, up from a previous estimate of $115 billion to $135 billion. The adjustment reflects higher component costs and additional data center expenses to support future capacity.

The layoffs are part of a broader trend in the tech industry, where companies are reducing staff to reallocate resources towards AI development and other strategic priorities.