Meta to Lay Off 8000 Employees in a Move to Offset Heavy AI Spending

Just last month, reports surfaced that Meta has laid off hundreds of employees across Facebook, Reality Labs, and other divisions. In what appears to be a separate company-wide layoff, Meta has reportedly told its staff that it will lay off 10% of its workforce, which translates to roughly 8,000 roles. This comes at a time when the company is trying to balance rising AI investments with operational efficiency.

Meta cuts 8000 jobs as AI spending climbs

Not to mention, many tech firms are doubling down on AI, which means spending has been at all-time high. Meta, who is among them, is apparently feeling the heat now and appears to be reshaping its workforce to keep up with the trend. Speaking of which, Meta is reportedly also developing an AI clone of CEO Mark Zuckerberg to interact with its staff.

Talking of layoff, Bloomberg reports that the job cuts are expected to take effect on May 20, while another 6,000 open roles will no longer be filled. That’s according to an internal memo seen by the news outlet.

The planned layoffs, reportedly confirmed by Meta’s Chief People Officer Janelle Gale, is related with Meta’s growing AI ambitions. The company has been pouring billions into infrastructure, talent, and partnerships to build large language models and AI-powered products. Now, that spending is starting to show pressure elsewhere.

“I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances,” Gale wrote in the internal memo.

Meta CEO Mark Zuckerberg has also been pushing aggressively into AI, encouraging teams to adopt internal AI agents for coding and productivity tasks. Back in recent months, Meta also locked in multiple high-value AI deals, including the one with Broadcom, suggesting a long-term shift toward automation and advanced computing.

As usual, the company will be offering severance packages to affected employees

It’s worth noting that Meta will offer 16 weeks base pay plus two weeks for every year of employment. The company will reportedly also cover the cost of COBRA health care coverage for US employees and their families for 18 months. For employees outside the US, severance packages will be similar but vary by country.