Meta to Cut 8,000 Jobs Starting May 20 as AI Capex Ramps to $115B–$135B
Meta will cut about 8,000 roles—10% of its 79,000 staff—starting May 20, with further reductions later driven by AI development. The layoffs coincide with a planned $115B–$135B AI data center investment for 2026, double 2025’s, heightening depreciation and operating cost pressure.
1. Layoff Details and Scope
Roughly 8,000 employees—about 10% of its nearly 79,000 global workforce—will be terminated beginning May 20, with WARN notices filed for 124 roles at Burlingame (effective May 22) and 74 at Sunnyvale (effective May 29). Meta has not finalized dates or headcount for subsequent cuts, which will depend on AI capability progress.
2. AI Investment and Financial Impact
Meta projects 2026 capital expenditures of $115B to $135B on data centers, GPUs and AI infrastructure—almost double 2025’s spend—prompting CFO Susan Li to warn of a “significant acceleration” in depreciation and operating expenses that may weigh on future earnings.
3. Organizational Changes and Previous Cuts
Following a March reduction of 700 roles and a January cut of 10–15% in Reality Labs, Meta established an Applied AI Engineering division and reassigned some employees to its new Small Business unit, marking a shift from targeted unit reductions to companywide restructuring.