Spending more on AI projects, Meta to cut 8,000 jobs

International

META is set to eliminate thousands of positions next month as the tech giant dramatically shifts its financial priorities toward artificial intelligence.

According to a memo circulated to staff on Thursday, the company plans to reduce its workforce by 10%—equating to approximately 8,000 employees—while simultaneously freezing thousands of open roles, a report by BBC stated.

The decision to trim the payroll is directly tied to Meta’s aggressive investment strategy in AI. A source familiar with the internal memo noted that the firm is slated to spend $135bn (£100bn) on AI initiatives this year alone.

This figure is staggering, representing an investment equivalent to the company’s combined AI spending over the previous three years. A Meta spokesman confirmed the planned job cuts but declined to provide further comment.

The move marks a culmination of signals from leadership regarding the company’s future. Meta co-founder and CEO Mark Zuckerberg had effectively telegraphed the looming cuts during public remarks in January.

Zuckerberg has frequently emphasized a vision of increased efficiency, observing that staff leveraging AI tools are becoming significantly more productive, often allowing a single individual to complete tasks that previously necessitated large teams.

"I think that 2026 is going to be the year that AI starts to dramatically change the way that we work," Zuckerberg stated.

While the memo, first reported by Bloomberg, officially sets the stage for the cuts, the atmosphere at Meta has been tense for weeks.

The company has already executed two smaller rounds of layoffs this year, totaling roughly 2,000 workers. Last week, Reuters reported that the total number of layoffs for the year could exceed 10,000. These upcoming reductions represent the company’s most significant downsizing since 2023.

Internal frustration has mounted alongside these shifts. This week, staff were informed that the company would begin tracking and logging interactions on work computers to help train and refine its AI models. One employee, facing the prospect of redundancy, described the initiative as "dystopian," telling the BBC, "This company has become obsessed with AI."

Meta’s workforce trajectory has been volatile since 2022, characterized by multiple rounds of layoffs affecting tens of thousands of staff. Although the company had resumed hiring—with total headcount recently returning to pre-layoff levels—this latest pivot underscores a deeper structural change.

The trend at Meta mirrors a broader industry-wide contraction. Other major tech firms, also aggressively pouring capital into AI infrastructure, have enacted widespread job cuts this year.

Amazon has laid off more than 30,000 workers, while Oracle has reduced its headcount by over 10,000. Among smaller firms, Block has shed nearly half its staff—totaling over 4,000 roles—and Snap has cut approximately 1,000 positions. Microsoft also joined the trend on Thursday, announcing voluntary buyouts for thousands of long-tenured employees.

Across the tech sector, executives have consistently cited the rapid development of AI capabilities and the necessity of massive capital investment as primary drivers for the perceived need to operate with leaner workforces.(Jhon Mark A. Aboabo, USJR Comm Intern)