Meta to cut one in 10 jobs after spending billions on AI

Source: BBC Technology

Meta will cut thousands of jobs next month as it spends more than ever on artificial intelligence (AI) projects.

The company told employees in a memo on Thursday that it planned to cut 10 % of its workforce—roughly 8,000 staff—and would also not fill thousands of open positions it had been hiring for.

A key reason for the layoffs is Meta’s increased spending on AI, for which it will this year spend $135 bn (£100 bn), roughly equal to the amount spent on AI in the previous three years combined, according to a person who viewed the memo.

“I think that 2026 is going to be the year that AI starts to dramatically change the way that we work,” Meta CEO Mark Zuckerberg said.

A Meta spokesperson confirmed the planned job cuts but declined to comment further.

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Details of the announcement

• The memo was first reported by Bloomberg: Meta tells staff it will cut 10 % of jobs in push for efficiency.
• Reuters had earlier reported that Meta could cut more than 10,000 employees this year.
• Meta has already cut around 2,000 workers in two smaller rounds of layoffs earlier in 2024.

The company also announced that it would begin tracking and logging employees’ interactions with work computers to help train its AI models, a move described by one employee as “dystopian” given the looming layoffs.

“This company has become obsessed with AI,” the employee told the BBC.

Recent history of Meta’s workforce changes

• Since 2022, Meta has enacted several rounds of job cuts, shedding tens of thousands of workers.
• After those cuts, the company resumed hiring, and by last year its total employee count was roughly back to pre‑layoff levels.
• The upcoming cuts will be Meta’s largest layoff since 2023.

Industry‑wide AI‑related layoffs

Other tech firms, also heavily investing in AI, have announced significant workforce reductions this year:

• Block laid off nearly half of its staff, totaling more than 4,000 workers (BBC report).
• Snap cut around 1,000 jobs (BBC report).
• Microsoft offered voluntary buyouts to thousands of long‑tenured employees.

Nearly all of these companies cite the growing capabilities of, or increased investment in, AI technology as a factor driving the need for fewer employees.