Meta says it will cut 8,000 jobs as AI spending soars
Source: BBC Technology
Meta to cut 8,000 jobs as AI spending soars
Meta announced that it will cut roughly 10 % of its workforce – about 8,000 staff. The company also said it will not fill thousands of open positions it had been hiring for.
Scale of the layoffs
- The memo, first reported by Bloomberg, states the cuts will begin next month.
- A Meta spokesperson confirmed the plan but declined further comment.
- The upcoming reduction will be Meta’s largest layoff since 2023.
AI investment driving changes
Meta’s spending on artificial‑intelligence projects is set to exceed $135 bn (£100 bn) this year, roughly equal to the total AI spend of the previous three years combined. A memo‑leaker indicated that this surge in AI investment is a key factor behind the job cuts.
“I think that 2026 is going to be the year that AI starts to dramatically change the way that we work,” said Mark Zuckerberg in January, noting that workers using AI tools can now complete projects that previously required large teams.
The company also announced that it will begin tracking and logging employees’ interactions with work computers to help train its AI models—a move described by one employee as “dystopian.”
Recent history of Meta layoffs
- Since 2022, Meta has carried out several rounds of cuts, shedding tens of thousands of workers.
- Earlier this year, Meta cut around 2,000 employees in two smaller rounds.
- After those reductions, hiring resumed, and the total headcount returned to roughly pre‑layoff levels.
Wider tech industry cuts
Other technology firms are also trimming staff amid massive AI investments:
- Block laid off more than 4,000 workers, nearly half its staff.
- Snap cut around 1,000 employees.
- Microsoft offered voluntary buyouts to thousands of long‑tenured staff.
Most of these companies cite the growing capabilities of AI and the need to reallocate resources as primary reasons for the reductions.