Meta Lays Off 10% Workforce, Cancels 6,000 Hires as AI Capex Jumps
Meta cuts 8,000 jobs (10% workforce), cancels plans to hire 6,000 people and shifts 7,000 employees to AI roles while forecasting capex of $125–145B for AI infrastructure. Rival Anthropic forecasts Q2 revenue of $10.9B and first operating profit, and Nvidia reports surging data center revenue beyond hyperscalers, intensifying AI competition.
1. Meta Initiates Major Workforce Reduction
Meta announced layoffs of approximately 8,000 employees, equal to 10% of its global workforce, marking the largest company-wide cut since the 2022–2023 efficiency campaign. Management has indicated that no further broad-based layoffs are planned for the remainder of the year.
2. Strategic Shift to Artificial Intelligence Roles
Alongside the layoffs, Meta canceled plans to hire 6,000 new employees and reassigned 7,000 existing staff into roles focused on AI workflows. CEO Mark Zuckerberg emphasized the need to reallocate resources toward developing personal superintelligence and other AI initiatives.
3. Significant Increase in AI Infrastructure Spending
Meta forecasts capital expenditures of $125–145 billion for the year, more than double its 2025 outlay, to support data centers and AI infrastructure. This surge in spending coincides with strong data center revenue growth at chip suppliers like Nvidia and rapid revenue expansion at AI peers such as Anthropic.