Meta Announces 8,000 Layoffs Starting May 20 Amid AI-Driven Restructuring

Starting May 20, Meta plans to eliminate approximately 8,000 jobs, which constitutes 10% of its total workforce, with further layoffs anticipated in 2026. The initial reductions will impact departments such as Reality Labs, recruiting, sales, global operations, and Facebook. According to filings in California, 124 positions in Burlingame will be cut effective May 22, and 74 in Sunnyvale effective May 29. This restructuring is fueled by a rise in AI investments, with capital expenditures for 2026 expected to reach between $115 billion and $135 billion for data centers and infrastructure. CFO Susan Li mentioned that increasing depreciation and operating expenses will affect earnings. By the end of 2025, Meta's workforce was nearly 79,000 after previous layoffs. Despite generating $200 billion in revenue and $60 billion in profit in 2025, these cuts are part of the 2022-2023 'Year of Efficiency.'