Meta plans 8,000 job cuts on May 20 as Zuckerberg doubles down on AI investments

When Will Meta Begin Layoffs? Report Outlines Details Of 8,000 Cuts Amid AI Focus - Goldman Sachs Group (

The specifics of the cuts have not yet been finalized, Reuters reported on Friday, citing sources familiar with the plans. The sources disclosed that the company's executives may adjust their plans as they observe developments in artificial intelligence capabilities. Meta did not immediately respond to Benzinga's request for comment. Zuckerberg Bets Big On AI Amid Leaner Operations Despite Meta's significant layoffs in 2022 and 2023, the company's stock was struggling at the time. However, it is currently in a more stable financial position. Meta's shares have risen by 5.86% since the beginning of the year. The impending layoffs at Meta have been a topic of discussion for some time. In March, the company hinted at significant workforce reductions to fund large-scale AI investments while tightening operating costs. Goldman Sachs Flags Long-Term Worker Risk Amid the layoffs in the tech industry, the prediction market is betting on whether 2026 will see more layoffs than 2025. Data from Kalshi, a federally authorized betting platform, shows that over $14.6 million has been bet on the contract "More tech layoffs in 2026 than in 2025?" Some analysts, however, argue that many tech layoffs reflect post-pandemic overhiring corrections rather than genuine AI-driven displacement. Stock Performance Meta has a market capitalization of $1.74 trillion, with a 52-week high of $796.25 and a 52-week low of $479.80. The large-cap stock is up 37.30% year to date. Price Action: According to Benzinga Pro data, META closed at $688.55 on Friday, up 1.73%. Benzinga's Edge Stock Rankings highlight that META has a Growth score of 84.11. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Meta Plans 8,000 Job Cuts Despite Strong Profits and Growth

Meta plans to cut nearly 8,000 jobs from May as it reshapes teams and sharpens its focus on AI. The move signals a shift toward leaner operations, even as the company remains profitable, underlining how big tech is resetting roles and priorities in 2026. Meta is reducing headcount as it moves deeper into artificial intelligence. There is significant investment in the AI toolkits, reducing the need for manpower in various functions driven by automation and efficiency gains. The company is reducing the number of layers in the managerial structure to speed up decision-making processes. Routine work is reduced while Meta allocates more resources to generative AI technology.

Meta targets May 20 for first wave of layoffs; additional cuts later in 2026

NEW YORK/SAN FRANCISCO - Meta intends to conduct a first wave of sweeping layoffs planned for this year on May 20, with more coming later, three sources familiar with the plans told Reuters. The Facebook and Instagram owner will lay off about 10 per cent of its global workforce, or close to 8,000 employees, in that initial round, one of the sources said. The company is planning further layoffs in the second half of the year, the three sources said, although details of those cuts, including date and size, were not yet settled. Executives may adjust their plans as they observe developments in artificial intelligence capabilities, the sources added. Reuters reported last month that the company was planning to lay off 20 per cent or more of its global workforce. Meta declined to comment on the timing or scope of planned cuts. CEO Mark Zuckerberg is pumping hundreds of billions of dollars into AI as he seeks to dramatically reshape his company's inner workings around the technology, reflecting a broader pattern among major U.S. companies this year, particularly in the tech sector. Amazon.com similarly has trimmed 30,000 corporate employees in recent months, representing nearly 10 per cent of its white-collar workers, while in February the fintech company Block chopped nearly half of its staff. In both of those cases, executives tied the cuts to efficiency gains from artificial intelligence. Layoffs.fyi, a website tracking tech job cuts around the world, reported that 73,212 employees have lost their jobs so far this year. For all of 2024, the figure was 153,000. Meta's layoffs this year will be the social media giant's most significant since a restructuring in late 2022 and early 2023 that it dubbed the "year of efficiency," when it eliminated about 21,000 jobs. At that time, Meta's stock was in freefall and the company was struggling to correct for COVID-era growth assumptions that ultimately proved unsustainable. The company is in a more comfortable financial position this time, but executives envision a future of fewer management layers and greater efficiency brought about by AI-assisted workers. Meta's shares are up 3.68 per cent since the start of the year, although they are down from a record high achieved last summer. Last year, it generated more than US$200 billion of revenue and achieved a $60 billion profit despite outsized spending on artificial intelligence. Menlo Park, California-based Meta employed nearly 79,000 people as of Dec. 31, according to its latest filing. In recent weeks, Meta has reorganized teams in its Reality Labs division and transferred engineers from throughout the company into a new "Applied AI" organization tasked with accelerating the development of AI agents that can write code and carry out complex tasks autonomously. One of the sources said some staffers also would be transferred into Meta Small Business, a unit set up last month, as part of the restructuring.

Meta to cut 8,000 jobs -- 10% of workforce -- in major bloodbath next month: report

Mark Zuckerberg's Meta plans to lay off 10% of its workforce in a companywide bloodbath next month - with even more cuts to follow later in the year, according to a report Friday. The Instagram parent will ax nearly 8,000 employees in the initial round set for May 20, Reuters reported. More layoffs are expected in the second half of the year, but Meta executives have yet to decide how extensive they will be or exactly when they will occur. Meta's plans could be adjusted based on the state of the company's artificial intelligence capabilities, sources ominously told the outlet. The bloodbath is unfolding as Zuckerberg shifts more resources toward the development of AI. Meta, which is scrambling to keep pace with rivals like Anthropic and OpenAI, has teed up $135 billion in capital spending this year alone. Last month, Reuters reported that Meta was planning to cut more than 20% of its workforce this year, potentially affecting some 15,000 workers. That would be Meta's most extensive job cuts since Zuckerberg slashed more than 20,000 jobs in late 2022 and early 2023 as part of its infamous "year of efficiency" push. A Meta spokesperson previously said that the initial Reuters article was a "speculative report about theoretical approaches." The company's stock rose nearly 2% in Friday trading. The social media giant had nearly 79,000 employees globally as of Dec. 31, according to company filings. Zuckerberg has set about integrating AI tools into every facet of Meta's business - to the point that the company is even developing a "photorealistic" 3D clone of the billionaire to chat with employees. The layoffs at Meta are just the latest sign of AI-related upheaval that has swept through the tech industry in recent months. Instagram rival Snap slashed about 1,000 jobs earlier this week, with CEO Evan Spiegel stating that AI would "enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers." Elsewhere, financial tech firm Block said in February it would cut 40% of its workforce, or more than 4,000 employees, while pivoting to a full embrace of AI tools. "Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I'd rather get there honestly and on our own terms than be forced into it reactively," Block CEO Jack Dorsey wrote in an open letter. Amazon axed an eye-popping 30,000 corporate jobs last fall while embracing AI to boost productivity.

Meta may cut 8000 jobs on 20 May despite making billions in profit: Report

Meta is preparing for another major round of job cuts, with the first wave expected to begin on 20 May, according to a Reuters report. The move could affect around 10 per cent of the company's global workforce, which works out to nearly 8,000 employees. More layoffs are also expected later in 2026, although the final scale and timing of those cuts have not been decided yet. The report suggests the decision is tied to Meta's growing focus on artificial intelligence, as the company looks to reshape teams, reduce layers of management and spend more aggressively on AI infrastructure. This would mark Meta's biggest workforce reduction since its earlier 'year of efficiency' restructuring. Also read: We are not just making products for India, we are gearing up for the world stage: Noise founder Amit Khatri The company, which owns Facebook, Instagram and WhatsApp, has not publicly confirmed the plans. Reuters said the details were shared by people familiar with the matter, who requested anonymity because the discussions are private. If the May round of layoffs goes ahead as reported, it would be another major chapter in Meta's long-running internal reset. Back in 2022 and 2023, the company laid off around 21,000 employees across multiple rounds. At the time, CEO Mark Zuckerberg described that period as the company's 'year of efficiency', a phrase that quickly became linked to Meta's cost-cutting push. What makes this fresh round different is that Meta is not in financial trouble. In fact, Reuters noted that the company generated more than $200 billion in revenue last year and posted around $60 billion in profit. Of course, the company's priorities now clearly revolve around AI. Like many major tech firms, Meta is spending heavily on data centres, chips and talent to stay competitive in the fast-moving AI race. At the same time, companies across the sector are rethinking how many people they need in certain roles as automation tools become more capable. Because of this, Layoffs.fyi, a website tracking tech job cuts around the world, reported that 73,212 employees have lost their jobs so far this year. For all of 2024, the figure was 153,000. As per Reuters, Meta has already started reorganising parts of the business. Teams inside Reality Labs, the division behind its virtual and augmented reality efforts, have reportedly been reshuffled. Some engineers have also been moved into a newer Applied AI group, which is focused on building advanced AI systems that can handle coding and more complex tasks. Also read: Our mission is to help 50 million people sleep comfortably: How Optimist wants to change India AC market There are also signs that some employees could be redirected rather than simply removed. Reuters reported that Meta has created a Small Business unit, which may absorb some workers depending on internal needs. Still, for thousands of Meta employees, the uncertainty is likely to be the bigger issue right now.