Meta to cut about 8,000 jobs starting May 20

Meta plans to begin a new round of layoffs on May 20, according to three sources familiar with the plans. One of the sources said the first wave will cut about 10% of its global workforce, or nearly 8,000 jobs.

More cuts are planned in H2, though the timing and size are not final and could change as executives assess developments in AI.

Meta declined to comment, and it had nearly 79,000 employees as of Dec. 31, according to its latest filing.

The move would be Meta’s biggest since it cut about 21,000 jobs in late 2022 and early 2023, as tech companies, including Amazon and Block, have tied recent layoffs to AI-driven efficiency.

🔗 Source: Reuters

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Implications, context, and why it matters.

Meta is planning layoffs and leaning harder on automation as it ramps AI spending

Early cuts are sizable, and total layoffs could top the nearly 8,000 roles from the first wave, though timing and scale remain unsettled 1.
Leaked memos tie the move to a US$115 billion-US$135 billion capital spending plan for 2026 to expand AI infrastructure 2.
Meta says in-house tools Metamate and DevMate can take on up to 70% of routine coding plus administrative work, supporting a smaller headcount 2.
The plan answers investor worries about AI costs and margins, while a claim that large institutional investors were private-messaging the board lacks independent backing in the available material 2.

AI-driven cuts are moving into higher-skilled tech jobs

Layoffs reportedly include senior software engineers and product managers, roles often treated as protected from automation 2.
Research cited puts 75% of computer programmer tasks within reach of AI replacement, while most physical work faces little exposure 1.
Meta’s approach could become a model for other large firms, and it may lift demand for AI infrastructure sellers such as Nvidia plus niche AI consulting shops 2.
Greater reliance on AI also raises dependence on data-center power, which turns energy prices into a sharper operating risk 2.