Meta to Implement 10% Staff Reduction in Efforts to Enhance Operational Efficiency

Meta Plans to Cut 10% of Workforce Amid Heavy AI Spending

Meta Platforms Inc. is set to cut approximately 10% of its workforce, or around 8,000 employees, in an effort to boost efficiency and offset its significant spending on artificial intelligence. The company made the announcement in a memo sent to employees on Thursday, stating that the layoffs will take effect on May 20. Additionally, Meta has decided not to fill around 6,000 open roles that were previously intended to be filled.

The job cuts come as Meta's Chief Executive Officer Mark Zuckerberg is investing heavily in the talent and infrastructure needed to develop cutting-edge artificial intelligence products, including large language models and chatbots. Meta already projected record capital expenditures for the year, and has announced several multibillion-dollar deals with AI partners over the past few months. Employees have been encouraged to use AI agents internally to help with tasks such as writing code.

Meta alluded to its AI spending in the memo, which was written by Janelle Gale, the company's chief people officer. The memo stated that the layoffs are part of Meta's continued effort to run the company more efficiently and to offset the investments being made in AI.

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Other big tech companies are also making cuts in the face of booming AI spending. Microsoft Corp. offered voluntary retirement to thousands of US employees on Thursday. Meta had around 79,000 employees at the start of the year and is scheduled to report first quarter earnings next week.