Meta prepares to lay off 8,000 employees in May, more cuts to follow

Meta is preparing to cut around 8,000 jobs in May, marking the first phase of a broader restructuring that could see more layoffs later this year.

The Facebook and Instagram parent plans to begin the reductions on May 20, with the initial round expected to affect roughly 10% of its global workforce, sources familiar with the matter told Reuters. Additional layoffs are likely in the second half of the year, although the timing and scale remain under discussion.

First phase of a wider restructuring

The planned cuts form part of a wider effort to reshape the company’s operations. Reuters reported last month that Meta could ultimately reduce 20% or more of its workforce, though executives may adjust the scale depending on business conditions and advances in artificial intelligence.

Meta declined to comment on the timing or scope of the layoffs, Reuters said.

As of December 31, the company employed nearly 79,000 people globally, according to its latest filing.

AI push drives organisational shift

The restructuring aligns with Chief Executive Mark Zuckerberg’s push to reorient Meta around artificial intelligence. The company is investing heavily in AI capabilities, with a focus on improving efficiency and reducing layers of management.

Executives are increasingly looking to AI-assisted tools to automate tasks and streamline operations, reflecting a broader trend across the technology sector, according to Reuters.

In recent weeks, Meta has reorganised teams within its Reality Labs division and reassigned engineers to a new “Applied AI” unit tasked with building advanced AI systems. Some employees are also expected to move into a newly created small business-focused unit as part of the changes.

Part of a broader tech industry trend

Meta’s planned layoffs come amid ongoing workforce reductions across the sector. Reuters noted that companies such as Amazon and fintech firm Block have also cut thousands of roles, often linking the moves to efficiency gains from AI adoption.

Data from Layoffs.fyi shows that more than 73,000 tech workers have lost jobs so far this year, compared with 153,000 across all of 2024.

For Meta, the latest round would be its most significant since the 2022 to 2023 restructuring, when it eliminated about 21,000 roles during what it termed its “year of efficiency”.

Strong financial position despite cuts

The job reductions come despite solid financial performance. Meta generated over $200 billion in revenue and about $60 billion in profit last year, even as it ramped up spending on AI, according to Reuters.

Shares in the company are up modestly this year, though they remain below a record high reached last summer.

With further layoffs under consideration and investment in AI accelerating, Meta appears to be recalibrating its workforce to match a more automation-led operating model in the years ahead.