Meta to cut 10% of staff as it pours billions into AI
CNN • • general
Key Points:
- Meta plans to lay off approximately 10% of its workforce, around 8,000 employees, and is closing about 6,000 open roles, with layoffs effective May 20.
- The company aims to improve efficiency and offset increased investments, particularly in AI infrastructure and talent, as part of its broader strategic shift.
- Meta has heavily invested in AI, spending $72.2 billion on capital expenditures in 2025, expected to rise to $115 billion in 2026, and has acquired AI startups to compete with rivals like OpenAI.
- CEO Mark Zuckerberg highlighted that AI is transforming work processes, enabling smaller teams to accomplish tasks previously requiring larger groups, which is influencing workforce changes.
- Affected US employees will receive 16 weeks of base pay plus two weeks per year of employment, with similar compensation packages planned for international staff.
