Meta begins cutting 10% of workforce as company ramps up AI spending

Meta has begun laying off 10% of its global workforce, with the parent company of Facebook set to notify roughly 8,000 employees by email starting Tuesday morning, May 20.

Employees had feared the cuts since they were first leaked by The Information in March, though Meta did not discuss the plans internally until last month.

In a memo obtained by Reuters, Meta Chief Human Resources Officer Janelle Gale told employees the company planned to reassign 7,000 workers to new initiatives tied to artificial intelligence workflows while eliminating some management positions.

The memo added:

“[In addition] many leaders will announce organizational changes. As organizational leaders worked through the changes, many incorporated AI-focused design principles into their new organizational structures. We are now at a stage where many organizations can operate with flatter structures composed of smaller pod/cohort teams that can move faster and demonstrate greater ownership.”

Morale at Facebook reported at rock bottom

The layoffs affect around 10% of Meta’s roughly 78,000-person workforce. Earlier this week, the company said in a memo that it would shift 7,000 employees into AI-related initiatives and close 6,000 open positions.

Morale at Facebook’s parent company is reportedly at an all-time low. According to Wired, conditions have deteriorated to the point where some employees are openly hoping for a virtual layoff notice and at least 16 weeks of severance pay.

One employee who has spent more than a decade at the company told the San Francisco Standard: “I tend to cry in the shower.” Another employee said large empty boxes had begun appearing in several Menlo Park offices ahead of Tuesday’s layoffs, with no explanation given to staff.

Layoffs are only the visible part of the iceberg

Chief Executive Mark Zuckerberg said in 2022 that earlier layoffs were intended to correct overhiring during the Covid period.

But the latest rounds are aimed at freeing up funding for artificial intelligence spending. The technology giant has pledged to spend $145 billion on AI this year.

In April, Meta introduced a new internal program that tracks every action employees take on their work computers.

The company said it would use the data to train AI models on “how people complete everyday tasks using computers.”

Many Meta employees objected to the move. Some launched a petition urging management to end the monitoring program, while employees in the UK have sought to unionize.

“Not about costs, but a cover for investment spending”

At the same time, Meta reported record profits. According to analysis by The Model Wire, “The layoffs are not about costs, but a pretext to obscure investment expenditure.”

Information from inside the company points to growing tension between shareholder returns and employee retention.

The trend is emerging across major technology companies as firms prioritize AI research, development and computing expenditures over traditional engineering roles.

The shift carries implications for AI talent markets: while Meta cuts staffing in some areas, specialist machine-learning teams are often expanding, reshaping who will build the next generation of systems.