Meta Cuts 15,000 Jobs in Major Reorganization to Fund AI Push

Meta notified approximately 15,000 employees of layoffs or reassignments in May 2026, the company's largest workforce reduction in years. About 8,000 employees were laid off outright, while roughly 7,000 were reassigned to AI-focused teams.

CEO Mark Zuckerberg framed the cuts as necessary to accelerate Meta's AI strategy. The company has committed to spending heavily on AI infrastructure in 2026, with capital expenditures expected to reach into the hundreds of billions of dollars across the tech industry.

The layoffs hit non-AI divisions hardest, including teams working on virtual reality hardware, content moderation, and some advertising products. Employees who were reassigned are being moved to teams working on AI models, AI-powered advertising tools, and the company's new AI agent products.

Meta is developing AI agents that can perform tasks on behalf of users, including shopping through Instagram. The company sees AI as the next major platform shift and is betting that early investment will pay off in the form of new revenue streams.

A departing Meta employee posted an internal video criticizing the company's AI direction, which was later reported by Mother Jones. The video drew attention to concerns among some staff about the pace and direction of the AI push.

Layoffs at other major tech companies, including Cisco and Block, have also been linked to AI-driven efficiency gains. Analysts say the trend reflects a broader shift in how tech companies allocate labor as AI tools take over routine tasks.

Meta's stock rose slightly on the day the layoffs were announced, reflecting investor approval of the cost-cutting measures.

The company said it plans to continue hiring aggressively in AI engineering and research roles.