Meta Plans Major Job Cuts in May Amid Shift to Artificial Intelligence

Meta is preparing for a significant round of job cuts, with the first phase expected to start on 20 May, according to a Reuters report. This move could impact about 10 percent of Meta’s global workforce, which amounts to nearly 8,000 employees. The company may implement further layoffs in 2026, though the exact scale and timing remain undecided.

Key Highlights

• Meta plans to cut about 8,000 jobs starting 20 May, affecting 10 percent of its workforce
• Layoffs are linked to Meta’s increased investment in artificial intelligence and restructuring efforts
• Meta generated over $200 billion in revenue and $60 billion in profit last year
• Further layoffs may occur in 2026, but details are not yet finalized

The reported layoffs are linked to Meta’s increased focus on artificial intelligence. The company aims to restructure teams, reduce management layers, and invest more in AI infrastructure. This would be Meta’s largest workforce reduction since its previous restructuring, known as the ‘year of efficiency.’

Background and Recent Layoff History

Meta owns major platforms including Facebook, Instagram, and WhatsApp. The company has not officially confirmed the layoff plans. Reuters cited sources familiar with the matter who requested anonymity due to the private nature of the discussions.

If the May layoffs proceed as reported, they will mark another major step in Meta’s ongoing internal changes. In 2022 and 2023, Meta laid off around 21,000 employees across several rounds. CEO Mark Zuckerberg described that period as the company’s ‘year of efficiency,’ a term now associated with Meta’s cost-cutting efforts.

AI Investment and Industry Trends

Unlike previous layoffs, Meta is not facing financial difficulties. Reuters noted that Meta generated over $200 billion in revenue last year and posted about $60 billion in profit. The company’s current priorities center on artificial intelligence. Like other major technology firms, Meta is investing heavily in data centers, specialized chips, and skilled talent to remain competitive in the AI sector.

Across the tech industry, companies are reassessing workforce needs as automation and AI tools become more advanced. According to Layoffs.fyi, a website tracking global tech job cuts, 73,212 employees have lost their jobs so far this year. For all of 2024, the total reached 153,000.

Internal Restructuring Efforts

Meta has already begun reorganizing parts of its business. Teams within Reality Labs, which handles virtual and augmented reality projects, have been reshuffled. Some engineers have moved to the Applied AI group, which focuses on developing advanced AI systems for coding and complex tasks.

There are also indications that some employees may be reassigned rather than laid off. Meta has created a Small Business unit that could absorb workers based on internal requirements. However, many employees still face uncertainty as the company continues to adjust its workforce and priorities.