Meta Platforms, Inc. plans to cut 10% of its workforce to enhance operational efficiency and offset substantial expenditures in artificial intelligence, affecting approximately 8,000 employees. The company disclosed the move in a memo distributed to staff on Thursday, indicating that the layoffs will take effect on May 20. Additionally, Meta will no longer fill 6,000 open positions that were previously planned.
The company has already projected record capital expenditures for this year, following several multibillion-dollar AI partnership deals announced in recent months. Meta has also encouraged employees to utilize internal AI agents to assist with tasks such as code writing.
In the memo, Meta's Chief Human Resources Officer, Janelle Gale, referenced the company's AI spending. She stated, "This is part of our ongoing effort to improve operational efficiency and helps offset other investments we are making."
Throughout the year, Meta employees have expressed concerns about potential job cuts. Gale noted that the company announced the layoffs in advance because details of the plan had already been leaked.
Amid rising AI expenditures, other major technology firms are also implementing cost-cutting measures. On Thursday, Microsoft offered voluntary retirement packages to several thousand of its U.S.-based employees.
Meta began the year with a workforce of nearly 79,000 employees. The company is scheduled to report its first-quarter financial results next week.
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