Meta is set to lay off approximately 10% of its workforce, impacting around 8,000 employees, with further cuts anticipated later this year.
Meta Platforms, the parent company of Facebook and Instagram, is preparing to initiate a new round of layoffs, with the first phase expected to commence on May 20, according to a report from Reuters citing sources familiar with the situation.
The company is likely to cut about 10 percent of its global workforce in this initial round, which translates to nearly 8,000 employees. Additionally, more layoffs are anticipated in the latter half of the year, although the specifics regarding timing and scale have yet to be determined.
Executives at Meta may adjust these plans based on developments in artificial intelligence (AI) over the coming months. Previous reports indicated that the company could ultimately reduce more than 20 percent of its workforce as part of a comprehensive restructuring effort.
CEO Mark Zuckerberg has been heavily investing in AI, committing hundreds of billions of dollars to pivot the company towards this technology. This strategic shift mirrors a broader trend among major U.S. tech firms that are reorganizing their operations to prioritize AI capabilities.
Meta is not alone in making these cuts. Amazon has recently eliminated around 30,000 corporate positions, which accounts for roughly 10 percent of its white-collar workforce. Similarly, fintech company Block Inc. laid off nearly half of its staff in February. In both instances, company leaders attributed the job reductions to efficiency gains driven by AI, highlighting the rapid transformation of hiring practices across the tech sector.
According to data from Layoffs.fyi, a total of 73,212 tech workers have lost their jobs globally this year. This figure is significant when compared to the total of approximately 153,000 layoffs recorded for the entirety of 2024, underscoring the ongoing trend of workforce reductions in the industry.
For Meta, the forthcoming layoffs represent the most significant workforce adjustment since the extensive restructuring that took place in late 2022 and early 2023, a period the company referred to as its “year of efficiency.” During that time, approximately 21,000 roles were eliminated as Meta faced challenges related to slowing growth post-pandemic and a notable decline in its stock value.
In contrast to that earlier period, the current financial landscape appears more stable for Meta. The company has reported robust revenue and profits, even while continuing to invest heavily in AI initiatives. Last year, Meta generated over $200 billion in revenue and reported around $60 billion in profit. Although its stock has seen modest gains this year, it remains below the peak levels reached last summer.
Executives are now aiming to create a leaner organization with fewer management layers, increasingly relying on AI-assisted systems to enhance productivity. As of December 31, the company employed nearly 79,000 individuals, according to its latest financial filing.
Recent internal changes at Meta reflect this strategic shift. The company has reorganized teams within its Reality Labs division and reassigned engineers to a newly established Applied AI group, which focuses on developing advanced AI agents capable of writing code and managing complex tasks autonomously. Some employees are also expected to transition into Meta Small Business, a new unit launched last month as part of the broader restructuring initiative.
This latest round of layoffs at Meta highlights the ongoing evolution within the tech industry as companies adapt to the rapid advancements in AI technology and seek to streamline their operations.
For further details, see the report from Reuters.