Meta confirms 8,000 layoffs with more cuts on the horizon amid AI pivot

In an internal communication that leaked before it could be officially announced, Meta's Chief People Officer Janelle Gale confirmed the company would begin laying off employees on May 20.

The memo acknowledged the awkward timing: "Normally, we would want to nail down more details before communicating about this broadly, but since this has leaked, I want to share what I can right now."

The cuts will begin on May 20, even as the company is scrapping plans to hire for 6,000 open roles, a blow to current staff and job seekers too. Those laid off in the US will receive 16 weeks of base pay, two additional weeks per year of service, and 18 months of health care coverage for themselves and their families.

The memo

"Over the last few weeks we have been working on some changes to our organisation that will result in us laying off around 10 per cent of the company on May 20, and closing about 6,000 open roles. Normally, we would want to nail down more details before communicating about this broadly, but since this has leaked, I want to share what I can right now. 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."

Further, Gale said in the memo that they are doing this as part of their continued effort to run the company "more efficiently" and to allow them to offset the other investments they were making. "This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here," Gale added.

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"We will support those who are laid off with a generous severance package which, in the US, will include 16 weeks base pay plus two weeks for every year of employment. We will also cover the cost of COBRA health care coverage for US employees and their families for 18 months. Packages outside the US will be similar but vary by country, as will local timelines and processes. We will also offer career services to support people in finding another role, and immigration support for those who need it. We’ll share more of these details in a follow up post ahead of May 20," the memo read.

"For notifications, we will follow the same process we have before: on May 20, anyone who is impacted will receive an email to their work and personal accounts – please make sure your personal email is updated in Workday. I know this leaves everyone with nearly a month of ambiguity which is incredibly unsettling. We will try to answer your questions here in the comments but as we’re still working through the details we aren’t able to share much more until later in May. Meanwhile, you can find more information on the People Portal which includes our standard FAQs and logistical details for layoffs."

How deep does it go

With an estimated 79,000 employees at the end of 2025, the planned 8,000 job cuts represent around 10 per cent of Meta's entire global workforce. But this may not be the end.

Earlier reports suggest that in 2026 alone, the company could reduce its global workforce by around 16,000, implying a further wave of cuts, roughly another 8,000, beyond what has already been confirmed.

AI pivot driving cuts

While the memo avoided explicitly naming AI as the reason for the layoffs, Meta's financial investments are revealing how the IT giant plans to replace the workforce with AI. It has to be noted Meta is not cutting jobs because it is losing money as the company made over $200 billion in revenue and around $60 billion in profit in its last year.

But the layoffs seem to be for Meta’s plan to double its AI spending in 2026 to about $135 billion from $72 billion last year. The company recently signed a $60 billion deal with AMD for AI chips and reportedly acquired Moltbook, an AI agent platform.

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CEO Mark Zuckerberg said 2026 will be the year "AI starts to dramatically change the way that we work," adding that Meta is investing in AI-native tooling to help employees do more individually.

"We're starting to see projects that used to require big teams now be accomplished by a single, very talented person," Zuckerberg said.

Broader Big Tech trend

Meta is not alone. Microsoft confirmed it will offer voluntary buyouts to some US employees, a first for the 51-year-old company, while Amazon announced plans to eliminate about 16,000 corporate jobs in January, its second round of mass cuts since October 2025.

Analysts say large tech companies like Meta, Microsoft and Amazon have been forced to reduce headcount to make up for the billions they have poured into building AI infrastructure.