Meta is ramping up its investment in artificial intelligence while simultaneously preparing for significant workforce reductions, with reports indicating two rounds of layoffs expected this year. One round has already been confirmed for May, while a second could impact up to 10% of employees. In total, around 8,000 jobs are expected to be cut, alongside thousands of unfilled roles, as the company seeks to streamline operations and improve efficiency through AI-driven automation.
A key part of the discussion online has been an internal HR memo that was reportedly shared with employees ahead of the layoffs. In the memo, Meta acknowledges the scale of the job cuts and describes them as part of a broader effort to run the company more efficiently while supporting major investments in AI. It also outlines severance packages, timelines for notifications, and support measures for affected employees, including pay continuation and career assistance.
CEO Mark Zuckerberg has outlined a long-term vision centred on advanced AI systems, including the development of “personal superintelligence,” as Meta competes with major technology firms such as Microsoft, Google, Amazon, and OpenAI. Analysts suggest the company’s strategy is focused on balancing rising costs through efficiency gains, automation, and new revenue opportunities in areas like advertising and emerging hardware products.
The restructuring comes despite Meta reporting strong financial performance in recent quarters, driven by revenue growth and increased AI-related investments. However, the company’s expenses have surged sharply, reaching $35.15 billion, a 40% year-on-year increase, largely due to heavy spending on data centres and infrastructure supporting AI systems. Capital expenditure is expected to rise further, with projections between $115 billion and $135 billion for the fiscal year.
However, experts warn that further job reductions may follow as Meta increasingly integrates AI across its operations, reducing reliance on large teams and reshaping its workforce structure.
Here’s the HR memo that Meta sent its employees:
“Over the last few weeks we have been working on some changes to our organization that will result in us laying off around 10% of the company on May 20, and closing about 6,000 open roles. Normally, we would want to nail down more details before communicating about this broadly, but since this has leaked, I want to share what I can right now. I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances.
We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making. This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here.
We will support those who are laid off with a generous severance package which, in the US, will include 16 weeks base pay plus two weeks for every year of employment. We will also cover the cost of COBRA health care coverage for US employees and their families for 18 months. Packages outside the US will be similar but vary by country, as will local timelines and processes. We will also offer career services to support people in finding another role, and immigration support for those who need it. We’ll share more of these details in a follow up post ahead of May 20.
For notifications, we will follow the same process we have before: on May 20, anyone who is impacted will receive an email to their work and personal accounts – please make sure your personal email is updated in Workday.
I know this leaves everyone with nearly a month of ambiguity which is incredibly unsettling. We will try to answer your questions here in the comments but as we’re still working through the details we aren’t able to share much more until later in May. Meanwhile, you can find more information on the People Portal which includes our standard FAQs and logistical details for layoffs.”
