Meta to Lay Off 10% of Staff: 8,000 Jobs Cut in May

At a glance:

• Meta plans to lay off approximately 8,000 employees in May, 10% of its workforce.
• Chief People Officer Janelle Gale announced the cuts in a memo to Bloomberg.
• Layoffs follow Meta’s $115–135 billion 2026 capital expenditure forecast for AI investments.

Layoffs Announced

Meta has announced it will lay off around 10% of its employees in May, according to a memo from the company’s chief people officer, Janelle Gale, published by Bloomberg. The cuts affect approximately 8,000 people globally, with Meta also closing around 6,000 open roles. The layoffs come as the social media giant continues to invest heavily in artificial intelligence (AI), including significant capital expenditures to hire top talent and build data centers.

AI Investments and Capital Expenditure

Meta’s significant investments in AI are part of its broader strategy to support its Meta Superintelligence Labs efforts and core business. The company forecasted in January that it will spend $115 billion to $135 billion in capital expenditures in 2026, a notable increase from its $72.22 billion in capital expenditures for 2025. These investments are intended to drive growth and innovation in Meta’s AI capabilities, which are becoming increasingly critical to its business model.

Previous Layoffs and Cuts

The recent layoffs are not Meta’s first in the AI investment era. Earlier this year, the company announced layoffs affecting hundreds of employees in its recruiting, social media, and sales teams, as well as cuts impacting about 10% of its Reality Labs division. These moves highlight Meta’s ongoing efforts to balance its AI ambitions with workforce management.

Employee Impact

Affected Meta staffers will be notified on May 20th. Janelle Gale, Meta’s Chief People Officer, acknowledged the difficulty of the decision, stating that it will mean letting go of people who have made meaningful contributions to Meta during their time here. She also noted that the layoffs will be part of Meta’s effort to run the company more efficiently and offset other investments.

Future Cuts

Reuters reported last week that Meta was targeting May 20th for layoffs, with further cuts planned for the second half of 2026. In March, Reuters had indicated that Meta was considering laying off 20% or more of the company. These plans underscore Meta’s commitment to significant workforce adjustments as part of its AI investment strategy.

Company Response

Meta spokesperson Tracy Clayton confirmed the accuracy of Bloomberg’s report but declined to comment further on the layoffs. The company’s response highlights the complexity of balancing AI investments with workforce management in a rapidly evolving tech landscape.

Context

Meta’s layoffs come amid a broader trend of AI-driven investment and restructuring across the tech industry. As companies continue to prioritize AI capabilities, workforce adjustments are becoming increasingly common as part of strategic realignment.

Why It Matters

Meta’s layoffs highlight the challenges facing tech companies as they balance AI investments with workforce management. The decision to cut 10% of its staff reflects the company’s efforts to run more efficiently while supporting its AI ambitions. This move will likely impact Meta’s operations, employee morale, and its ability to compete in the rapidly evolving AI landscape.