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Meta Cuts 8,000 Jobs and Moves 7,000 Employees into New AI Teams

The company says the changes will free capital for a record AI buildout focused on data centers, custom chips and large-model training.

Overview

  • Meta began notifying affected staff on May 20, sending emails first to workers in Singapore at about 4 a.m. local time and phasing notices by time zone.
  • The company is eliminating roughly 8,000 roles, closing about 6,000 open job postings and reassigning around 7,000 remaining employees into newly formed AI-focused organizations.
  • Meta says the reorganization will create flatter, pod-style teams and improve efficiency while funding an unprecedented 2026 capital plan of roughly $125 billion to $145 billion for AI infrastructure.
  • U.S. severance terms confirmed include 16 weeks of base pay plus two extra weeks per year of service and extended health coverage, while analysts note the layoffs may save only about $3 billion compared with the scale of AI spending.
  • Employees have raised privacy and morale concerns after reports that Meta is collecting granular device activity to train models and more than 1,000 staffers signed a petition opposing the practice, which could draw regulatory scrutiny in Europe.