Meta Cuts 8,000 Jobs as Part of Major AI Spending Shift
Meta announced layoffs of approximately 8,000 employees (10% of workforce) while scrapping plans to fill 6,000 open roles. The company raised its 2026 capital expenditure guidance to $145 billion, redirecting resources from headcount to massive AI infrastructure spending.
Restructuring Details
Layoff Scale: Cuts of approximately 8,000 jobs representing 10% of Meta's workforce, with plans to cancel 6,000 open positions.
Capital Reallocation: 2026 capital expenditure guidance raised by up to $10 billion to $145 billion, primarily for AI infrastructure.
Future Rounds: Reductions will continue with potential rounds in August and fall.
AI Surveillance: CEO Mark Zuckerberg emphasized that AI advances are forcing the company to rethink optimal headcount. An internal "Model Capability Initiative" tool now tracks employee actions to train AI agents for coding and other tasks.
Employee Impact: Employee sentiment has declined sharply, with Blind ratings dropping and internal petitions raising privacy concerns over data collection for AI training. The layoffs reflect a broader industry trend where AI is replacing roles even as stock prices rise.