After 8,000 cuts, Meta signals layoffs may not be over amid AI surge

The artificial intelligence race is beginning to exact a visible human cost at Meta.

As the company accelerates its spending on AI infrastructure and development, chief executive Mark Zuckerberg has acknowledged that these investments are forcing difficult decisions, including widespread layoffs that could reshape the company’s workforce for years to come.

AI spending drives sweeping restructuring

Meta is preparing to cut around 10 per cent of its workforce, affecting roughly 8,000 employees, with layoffs set to begin on May 20. The move will also see the company abandon plans to fill about 6,000 open roles, according to internal communications first reported by Bloomberg.

Speaking to employees, Zuckerberg described “compute infrastructure” and “people-oriented” expenses as Meta’s two biggest cost centres, according to The Wall Street Journal. With spending on AI rising sharply, he said the company must reduce headcount to balance its finances.

More from Tech

He also pointed to a fundamental shift in how work is carried out. Advances in AI tools mean tasks that once required teams of 50 or even 100 people can now be handled by as few as 10. Maintaining larger teams in such cases, he suggested, could hinder rather than help productivity.

However, Zuckerberg stressed that smaller teams do not automatically translate into fewer opportunities. AI, he argued, could allow employees to take on more projects and move faster, signalling a reorganisation of work rather than a simple reduction in capacity.

He also clarified that the layoffs are not directly tied to Meta’s internal transition towards an “AI-native” structure or its efforts to build autonomous AI agents, pushing back on concerns that automation alone is replacing jobs.

Uncertainty remains despite reassurances

Even as Meta confirms the scale of its job cuts, executives have stopped short of offering guarantees about what comes next. During an internal meeting reported by Business Insider, chief people officer Janelle Gale acknowledged that she could not promise there would be no further layoffs.

While she described the underlying business as strong, Gale noted that shifting priorities, fierce competition and the need to manage costs responsibly mean the company will continue to adjust team structures. Some divisions are expected to be more affected than others, though specifics were not disclosed.

Zuckerberg echoed that uncertainty, telling staff he does not have a clear long-term roadmap for how workforce needs will evolve. “I don’t think anyone does,” he said during a town hall session cited by Reuters.

The lack of clarity, combined with Meta’s relative silence during its broader AI-focused reorganisation, has sparked internal frustration. Employees have reportedly voiced criticism on internal forums, particularly as the company introduces new initiatives such as tracking anonymised data from keystrokes and mouse movements to train AI systems. Zuckerberg insisted that such data is abstracted and not individually monitored.

Mounting costs and market pressure

Meta’s aggressive push into AI is also reshaping its financial profile. The company recently raised its capital expenditure forecast to between $125 billion and $145 billion, up from a previous range of $115 billion to $135 billion. The scale of investment reflects both infrastructure expansion and the development of proprietary AI models.

Among these is the company’s latest system, Muse Spark, which Meta claims can compete with offerings from OpenAI, Google and Anthropic. It is also deepening partnerships with firms such as Nvidia and Amazon to support its AI training and infrastructure needs.

Across the industry, spending is surging. Tech giants including Meta, Amazon and Google are collectively expected to invest as much as $750 billion in AI this year, a scale that has unsettled investors and weighed on Meta’s share price.

Zuckerberg also pointed to external economic pressures affecting the company’s core advertising business. He said rising oil prices, following US military actions involving Iran earlier this year, have reduced discretionary consumer spending, in turn impacting advertising demand.