Meta to Cut 10% Staff as AI Costs Soar 40% to $35.15B
Meta will eliminate 10% of its workforce—about 8,000 jobs—and leave additional roles unfilled next month as CEO Mark Zuckerberg redirects resources toward 'superintelligence' AI initiatives. Costs rose 40% to $35.15 billion, with $22.14 billion in capex and $115–135 billion planned for AI infrastructure this year.
1. Meta Announces 10% Workforce Reduction
Meta will lay off roughly 8,000 employees and leave additional positions unfilled next month, cutting about 10% of its workforce to boost productivity as it pursues AI development.
2. AI Spending and Capital Expenditures
Meta's costs rose 40% year-over-year to $35.15 billion in the recent quarter, with capital expenditures of $22.14 billion and an expected $115–135 billion capex for the fiscal year to power AI and superintelligence labs.
3. Strategic AI Focus
Mark Zuckerberg has prioritized delivering 'superintelligence', partnering on smart glasses and deploying AI agents for coding and operations, positioning Meta in a high-stakes race against Amazon, Google, Microsoft and OpenAI.
4. Analyst Outlook on Efficiency Gains
Analysts anticipate further layoffs as Meta leverages AI tools to automate tasks, streamline operations and reduce costs, expecting improved advertising efficiency and new revenue opportunities from AI-driven products.