- About 8,000 of Meta’s 80,000 workers are expected to lose their jobs this month
- Business investment expected to increase by $10 billion to $145 billion
- Revenue is up 33%, but shares are down 9%
Meta reportedly plans to cut around 8,000 jobs, or 10% of its current workforce, as early as this month as part of ongoing cost-cutting measures, and further layoffs are also not ruled out.
HR director Janelle Gale explained the need for action on agility amid changing priorities and competition from rival companies, but with potential future layoffs, worker morale is likely under enormous pressure with employees demanding more transparency.
The company has already laid off around 1,700 workers in 2026 (via layoffs.fyi), and at least 4,300 in 2025.
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Speaking about the job cuts, CEO Mark Zuckerberg suggested they were largely driven by growing spending on AI infrastructure in data centers and compute. Business investment continues to rise, estimated at $145 billion, which has ultimately forced savings elsewhere. This figure is up $10 billion, which is not so insignificant, from previous projections (via Forbes).
Zuckerberg stressed that AI itself does not replace jobs, but the technology can still be indirectly attributed to job losses, with Meta focusing on significant AI spending on infrastructure. He has previously acknowledged that AI allows smaller teams to work more efficiently, so it’s not as if AI isn’t responsible for some direct job losses.
Although the company has laid off thousands of workers in recent years, it has also been rehiring in other areas of the business, with headcount up 1% year-over-year.
However, despite a “breakout quarter,” with revenue up 33% to $56.31 billion, the company’s shares are down about 9% after the company’s latest earnings release, with investors more likely concerned about large capital expenditures than workforce changes.
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