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Meta Confirms Nearly 200 Bay Area Layoffs as It Ramps Up AI Spending

The cuts reflect a shift in resources toward AI that executives say reduces the need for large teams.

Overview

  • State filings show 124 jobs will end in Burlingame on May 22 and 74 in Sunnyvale on May 29, with all affected positions permanently eliminated.
  • The move follows recent cuts of about 700 roles across sales, recruiting, operations, and Reality Labs, the hardware unit behind VR and AR efforts.
  • Meta says it is investing heavily in artificial intelligence, projecting up to $135 billion in capital spending this year to build data centers and related infrastructure.
  • Mark Zuckerberg has said AI tools let a single skilled person do work that once needed big teams, and reports of planning for cuts of 20% or more were labeled speculative by a company spokesperson.
  • The layoffs land as tech firms keep trimming staff to fund AI projects, with trackers counting more than 152,000 industry job cuts in 2024 and at least 118,000 in 2025.