Overview
- Meta, which disclosed the plan Thursday in an internal memo, will lay off about 10% of staff starting May 20 in a move that coincided with a 2.4% drop in its share price.
- The company will also leave roughly 6,000 open positions unfilled to redirect people and cash toward artificial intelligence projects.
- Leadership frames the reset as an efficiency push to offset rising AI costs, with capital spending this year projected at $115 billion to $135 billion and total 2026 expenses guided to $162 billion to $169 billion.
- U.S. employees who are laid off will receive 16 weeks of base pay plus two weeks per year of service and 18 months of COBRA health coverage, with similar packages adjusted by country.
- The shift reflects a wider tech retrenchment tied to AI investment, as Microsoft offers voluntary buyouts to about 8,750 U.S. workers in a parallel move to build leaner teams.