Meta eliminated about 8,000 positions and scrapped plans to hire another 6,000 people as it prepares to spend up to $135 billion on artificial intelligence infrastructure in 2026.
Here's what to know
The cuts affected about 10% of Meta's workforce, with the heaviest losses falling on support staff and teams working on non-AI products, according to Startup Fortune. Parts of Meta's integrity and cybersecurity teams are among those affected.
Meta plans capital expenditures of between $135 billion and $145 billion for 2026, up from its 2025 total of $72 billion, according to Reuters.
The money will fund infrastructure such as data centers and graphics processing units, the chips used to power AI systems.
Investors are questioning when substantial returns will materialize as chief executive Mark Zuckerberg channels operating resources into the infrastructure build-out. The company has also advised investors that its data center plans through 2028 could total nearly $600 billion.
More background
Meta is reorganizing its workforce around AI, moving thousands of existing staff members into AI-related roles while cutting staff elsewhere.
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Despite the investment, Meta's AI offerings have yet to produce significant revenue. Microsoft, Amazon, and Google, by comparison, already have cloud businesses that charge customers for AI computing.
According to Startup Fortune, analysts at KeyBanc Capital Markets noted in November that investors were questioning the scale of Meta's spending given its uncertain payoff.
Separately, Bloomberg reported that semiconductor companies AMD and Arm Holdings each lost more than one-fifth of their stock value during November amid broader concerns about AI investment.
Data centers require a lot of electricity to run their chips and cooling equipment, and cooling can also consume egregious amounts of water. Growing demand for computing can strain electricity supplies and contribute to higher bills.
Zuckerberg has acknowledged to employees that the promised payoff from the sharp rise in 2026 spending has not arrived.
Meta eliminated about 600 jobs within AI Superintelligence Labs on October 22, following its purchase of a Scale AI stake for $14.3 billion and its hiring of Alexandr Wang as chief AI officer.
A smaller unit would be able to act more quickly, Wang told employees, describing bureaucracy as a problem that had developed within the team.
The roughly 8,000 job cuts mark Meta's biggest workforce reduction since its "year of efficiency," which saw about 21,000 positions removed from 2022 to 2023.
Where can I learn more?
Meta's job cuts come as investors question its heavy spending on AI.
• Meta's AI push preceded investors wiping nearly $20 billion from Zuckerberg's paper fortune.
• Meta board members reportedly threatened to quit over Zuckerberg's demands for higher pay.
• Meta's Muse AI tracks friends' locations and interests while suggesting ways to strengthen relationships.
• Meta's AI-generated Reels show crying children being arrested, promising freedom for likes and follows.
• Barclays has tied 5,000 job cuts to AI, with developers among the targeted roles.
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