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Meta slashes 8,000 jobs as AI drives massive cost cuts

Engadget •
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Meta confirmed a sudden reduction of 8,000 staff in an all‑hands memo from CEO Mark Zuckerberg. The cut, announced on Tuesday, will affect roughly 20 percent of the company’s workforce. Employees will either leave or be reassigned to new AI‑focused teams, according to a memo seen by Sky News and Business Insider, and their families will receive severance packages for support.

The move comes as Meta earmarks $115 billion to $135 billion for 2026 capital spending, double last year’s budget, to fuel its Superintelligence Labs. Zuckerberg framed the layoffs as a necessary shift toward AI, noting that “AI is the most consequential technology of our lifetimes.” The company said it expects no further company‑wide cuts this year to realign resources and research.

Employees displaced by the cuts have voiced frustration on social media, citing the loss of entire functions and the company’s focus on AI. Meta’s guidance on severance, visas, and transition support was outlined in the memo, emphasizing gratitude for contributions. The reduction marks one of the largest cost‑cutting measures in Meta’s history, reshaping its human capital strategy for future growth.