- Around 8,000 of Meta’s almost 80,000 workers will lose their jobs this month
- The company’s capital spending is expected to increase by $10 billion to $145 billion
- Revenue rose 33%, but shares fell 9%
Meta reportedly plans 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 being ruled out.
Chief people officer Janelle Gale explained the push towards agility amid changing priorities and competition from rival companies, but with future redundancies potentially on the line, worker morale is believed to be under enormous pressure and employees are demanding more transparency.
The company has already laid off about 1,700 workers in 2026 (via layoffs.fyi), and at least 4,300 in 2025.
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Speaking about the job cuts, CEO Mark Zuckerberg implied that they were largely driven by increasing spending on AI infrastructure in data centers and computing. Corporate capital spending continues to rise and is estimated to reach $145 billion, ultimately forcing savings elsewhere. This figure represents a not-so-insignificant increase of $10 billion over previous projections (via Forbes).
Zuckerberg emphasized that AI itself is not replacing jobs; However, the technology can still be indirectly attributed to job losses as Meta focuses on heavy spending on AI across infrastructure. However, it has previously acknowledged that AI allows more agile teams to work more efficiently, so it’s not as if AI isn’t responsible for some direct job losses.
Although the company has laid off thousands of workers in recent years, it has also rehired in other areas of the business, with headcount increasing by 1% year over year.
However, despite a “historic quarter,” with revenue up 33% to $56.31 billion, the company’s shares have fallen about 9% following the company’s latest earnings release, and investors are likely more concerned about the significant capital expenditure than shift work.
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