- About 8,000 of Meta’s nearly 80,000 workers stand to lose their jobs this month
- The company’s capital expenditures are expected to increase by $10 billion. to $145 billion
- Revenue is up 33%, but shares are down 9%
Meta is reportedly planning to cut around 8,000 jobs, or 10% of its current workforce, as soon as this month amid ongoing cost-cutting measures, with further layoffs also not ruled out.
Chief People Officer Janelle Gale explained the drive for agility amid shifting priorities and competition from rival companies, but with future layoffs potentially at stake, worker morale is believed to be under enormous pressure with employees demanding more transparency.
The company has already laid off around 1,700 employees in 2026 (via layoffs.fyi), and at least 4,300 in 2025.
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Speaking about the cuts, CEO Mark Zuckerberg hinted that they were largely driven by rising AI infrastructure spending across data centers and computing. The company’s capital expenditures continue to rise, estimated to be as high as $145 billion, ultimately forcing savings elsewhere. This figure is up by a not-insignificant $10 billion from previous projections (via Forbes).
Zuckerberg emphasized that AI is not itself replacing jobs, but the technology can still be attributed to job losses indirectly, with Meta focusing on large AI spending across infrastructure. He’s already acknowledged in the past that AI enables leaner teams to work more efficiently, so it’s not as if AI isn’t responsible for some direct job losses.
Although companies have laid off thousands of workers in recent years, it’s also been rehiring across other areas of the business, with a 1% year-over-year layoff.
However, despite a “milestone quarter” with a 33% increase in revenue to $56.31 billion, the company’s shares are down about 9% after the company’s latest earnings, with investors more likely to be worried about the big investment spending than job changes.
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