Meta to Slash 10% Workforce, Cancel 6,000 Hires While Raising AI Capex to $145B
Meta Platforms will cut 8,000 roles this week, about 10% of staff, and scrap plans to fill 6,000 open positions to offset surging AI investments. The company boosted its 2026 capital expenditures by up to $10 billion to as much as $145 billion as compute demands grow.
1. Layoff Plans and Scale
Meta Platforms plans to lay off approximately 8,000 employees this week, representing around 10% of its workforce, and has canceled all plans to fill 6,000 open roles. These cuts begin Wednesday as part of efforts to streamline operations and free up resources for strategic investments.
2. Previous Workforce Reductions
Earlier in 2026, Meta reduced its Reality Labs unit by over 1,000 employees in January and cut several hundred more roles in March. The company also phased out the use of third-party vendors and contractors for content moderation tasks.
3. AI Investment and Capex Guidance
Capital expenditures guidance for 2026 was raised by $10 billion, lifting the range to $125–145 billion to meet escalating AI compute needs. Executives acknowledged ongoing underestimation of computing requirements as new AI projects and initiatives emerge.
4. Outlook and Possible Future Cuts
Employees expect additional rounds of layoffs in August and later in 2026 as finance chief Susan Li noted uncertainty around optimal company size. Leadership emphasized balancing headcount with aggressive AI spending to maintain growth and efficiency.