Tech

Meta cuts 8,000 roles to fund $135 billion AI push

CEO Mark Zuckerberg confirms layoffs and transfers to offset massive investment in artificial intelligence infrastructure, with no further company-wide cuts expected this year.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: Engadget · original
Meta has reportedly laid off 8,000 employees
Workforce restructuring affects 20 percent of staff as capital expenditure doubles

Meta has reportedly laid off approximately 8,000 employees, representing 10 percent of its total workforce, as part of a strategic pivot towards artificial intelligence. CEO Mark Zuckerberg confirmed the reductions in an all-hands memo, stating the cuts are intended to offset investments in AI. The company is also transferring 7,000 staff members to new organisations focused on building AI tools and applications.

When combined with previously announced unfilled vacancies, these changes affect around 20 percent of Meta’s workforce. This restructuring is one of the most significant cost-cutting measures in the company's history. Meta stated it does not anticipate further company-wide layoffs for the remainder of the year.

The workforce adjustment coincides with Meta’s capital expenditure forecast for 2026, which projects spending between $115 billion and $135 billion. This figure is nearly double the $72.22 billion spent in 2025, designated to support Meta Superintelligence Labs efforts and core business operations. That capital spend forms a dominant part of its total expenses next year, projected to be between $162 billion and $169 billion.

HR head Janelle Gale had previously notified employees in a memo that 7,000 staff would be moved to new AI-focused organisations. Last month, Gale informed staff that 8,000 jobs would be cut as part of efforts to run the company more efficiently. Meta had previously indicated that around 6,000 job vacancies would remain unfilled.

Multiple employees have shared their experiences on social media, with one technical writer noting their entire 'function' was let go to fund AI investment. The memo provided guidance on severance and visa matters, with Zuckerberg writing that AI is the most consequential technology of their lifetimes and that companies leading the way will define the next generation.

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