Meta reverts to that and cuts 8,000 jobs to fund AI

In January, 1,500 employees from Reality Labs had been laid off. In March, 700 other positions were cut across several divisions. This Thursday, an internal memo revealed by American press and confirmed by Meta announces a massive cut: 8,000 jobs cut on May 20. Adding to that, 6,000 open positions that will never be filled. In four months, the total exceeds 10,000 departures. The company still had 78,865 employees as of the end of 2025.

Where does the money saved on salaries go?

Janelle Gale, the Human Resources Director, justifies the cuts in her memo with a "continuous effort to improve efficiency." The stated goal: "to offset other investments we are making." The word "other" primarily refers to artificial intelligence. Meta expects between 115 and 135 billion dollars in investment spending in 2026, nearly double the 72 billion spent last year.

The company has massively recruited for its superintelligence lab. It has also acquired AI startups Moltbook and Manus. Meanwhile, Reality Labs teams are shrinking. The metaverse division, once Zuckerberg's flagship, has lost over 2,200 positions since January. Three VR game studios (Armature, Sanzaru, Twisted Pixel) have closed permanently.

Also read: Twitter co-founder fires half of his employees due to AI and warns others will follow

Mark Zuckerberg had warned already at the January earnings conference. He called 2026 the year where "AI will start to radically change how we work." He added that projects that once required large teams are now being led by "a single very talented person."

Why is Meta laying off employees despite strong financial position

Yet, the coffers are full at Menlo Park. In the last quarter of 2025, Meta reported 59.89 billion dollars in revenue (up 24%) and a record net profit of 22.77 billion. The company does not lay off employees because it is losing money. It lays off employees because it is spending even more elsewhere.

And bills also pile up on the legal side. A jury in New Mexico concluded that Meta did not protect young users from sexual exploitation. Penalties could reach 375 million dollars. In Los Angeles, Meta and Google were condemned to pay 6 million dollars to a woman exposed to social media since childhood. Meta is appealing both cases.

Affected American employees will receive 16 weeks of base salary, plus two weeks per year of tenure. The Meta stock lost about 2% by the end of the trading session. According to other sources, remaining teams are being reorganized into "pods" focused on AI.

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Source: BBC