Meta to Reduce Staff by 10 Percent Amid Massive AI Investment Shift

Meta is preparing to eliminate 10 percent of its workforce to boost operational efficiency as it pivots toward aggressive artificial intelligence spending.

A source informed AFP that the company intends to terminate approximately 8,000 jobs and freeze hiring for thousands of other vacancies starting next month.

CEO Mark Zuckerberg is prioritizing the development of superintelligence, placing Meta in a high-stakes competition with industry leaders such as Google, Amazon, Microsoft, and OpenAI.

These financial commitments are substantial, with Meta projecting capital expenditures between $115 billion and $135 billion for the current fiscal year to support data centers and research labs.

Simultaneously, Microsoft is reportedly exploring its own workforce reductions.

Sources indicate that the company is offering voluntary buyout packages to specific US employees, targeting staff who meet certain age and seniority criteria. Microsoft, which has also invested billions into AI, did not provide a comment regarding these reports.

Market analysts suggest these moves are part of a broader trend among tech giants to utilize AI automation to streamline operations. Wedbush analyst Dan Ives noted that Meta is likely using these structural changes to leverage AI for coding and task automation, which may lead to further staff reductions later this year.

While expenses have climbed significantly due to infrastructure costs, experts remain optimistic that improved advertising performance and product innovations, such as Meta’s collaboration with EssilorLuxottica, will ultimately justify these expenditures.