Meta cuts 8,000 jobs as AI costs jump 40% to $35.15 billion
Meta will cut about 8,000 employees—around 10% of its workforce—and leave additional positions unfilled next month to boost productivity. The company’s costs rose 40% year-over-year to $35.15 billion last quarter and it forecast $115–$135 billion in capital expenditures driven by AI infrastructure.
1. Meta's Layoff Plan
Meta will reduce its workforce by about 8,000 employees—approximately 10%—and freeze additional roles next month to streamline operations and boost efficiency.
2. Surge in AI Investment Costs
The company’s operating costs climbed 40% year-over-year to $35.15 billion last quarter as it ramps up spending on AI research and development.
3. Capital Expenditure Forecast
Meta projects capital expenditures between $115 billion and $135 billion for the fiscal year, driven largely by investment in data centers and AI infrastructure.
4. Competitive AI Landscape
Meta is vying for AI leadership against rivals including Google, Microsoft and OpenAI, leveraging workforce reductions and automation to fund its push toward superintelligence.