Meta plans to cut a tenth of its workforce as it seeks productivity gains from remaining employees while investing heavily in artificial intelligence.
The company will lay off about 8,000 employees and leave thousands of other positions unfilled next month, a source told AFP.
The move comes as co-founder and CEO Mark Zuckerberg prioritizes delivering “superintelligence” in a costly AI race against Amazon, Google, Microsoft, and OpenAI.
Reports also indicated that Microsoft is considering voluntary buyouts for some U.S. employees, a move affecting about 7% of staff eligible under a “years of employment plus age” rule, according to CNBC. Microsoft declined to comment.
Meta and Microsoft are both set to report quarterly earnings next week. In January, Meta’s earnings exceeded market expectations, with revenue growth alongside rising AI investments. Costs reached $35.15 billion, up 40% year-on-year, with capital expenses for infrastructure such as AI-powered data centers totaling $22.14 billion. Meta projects $115–$135 billion in capital expenditures this fiscal year, largely for its Meta Superintelligence Labs.
Zuckerberg said, “I’m looking forward to advancing personal superintelligence for people around the world in 2026.” Analysts note that AI-driven efficiencies, including in advertising and product innovation, may justify the layoffs and future investments.
Wedbush analyst Dan Ives suggested more layoffs could occur as Meta leverages AI tools to automate tasks and streamline operations, reducing costs.
