Meta to Cut 8,000 Jobs Amid Record Profits and Deepening Workforce Unrest
With Q1 2026 profits nearing $27 billion and capital expenditure forecasts rising, Meta faces internal revolt over AI monitoring and compensation cuts.
Meta plans to reduce its global workforce by approximately 10 percent, affecting nearly 8,000 employees, with the cuts scheduled for Wednesday, May 20. The company states the reductions are necessary to improve operational efficiency and offset substantial investments in artificial intelligence infrastructure. This latest action adds to roughly 25,000 job cuts announced by Meta over the past four years, marking a significant contraction even as the firm reports record financial performance.
The announcement coincides with nearly $27 billion in profits for the first quarter of 2026 and a $10 billion increase in the company’s total capital expenditure forecast, which now sits between $125 billion and $145 billion for the year. CEO Mark Zuckerberg has directed these funds largely toward data centres, aiming to secure top talent and compute power for AI development. Despite the strong balance sheet, employee morale is reported to be at historic lows, driven by widening compensation gaps, recent legal liabilities, and mandatory role changes for key engineering staff.
Compensation structures have shifted significantly, with median total compensation falling to $388,200 last year from $417,400 in 2024, according to public filings. In February, Meta reduced the portion of annual raises paid in company shares by 5 percent, following a 10 percent cut the previous year. These financial adjustments come as Meta shares have fallen approximately 5 percent this year, reflecting the high costs associated with the company’s pivot from virtual reality projects to AI development.
Internal tensions have been exacerbated by the deployment of the Model Capability Initiative (MCI), mandatory corporate software installed on US employees’ computers to track typing and clicking activity for AI training purposes. Opting out is reportedly not possible, and the software has sparked privacy concerns among staff. Additionally, at least 1,000 top engineers were forcibly transferred to a new Applied AI Engineering division, with refusal posing a risk of layoff. Recent court losses in California and New Mexico, where jurors ordered Meta to pay nearly $380 million in damages and civil penalties for product and policy failures, have further contributed to a grim workplace atmosphere.
In response to these conditions, workers in the UK are attempting to unionise with the United Tech & Allied Workers, citing frustration with leadership and concerns over job security. A small protest group has also distributed flyers in US offices urging colleagues to sign a petition against the AI tracking program. While some units, such as TBD Lab, remain insulated from the broader chaos, the majority of staff face uncertainty, with only the instruction from human resources to ensure personal email addresses are up to date before the cuts take effect.
