Meta to axe 8,000 jobs as tech giants accelerate AI shift

Restructuring includes redeployment to artificial intelligence roles; LinkedIn to cut 600 staff

Tech giants are tightening their belts amid shifting industry priorities. Meta, the parent company of Facebook, WhatsApp and Instagram, is moving ahead with a major restructuring that will result in nearly 10% of its workforce being laid off, according to reports citing NBC News on Wednesday.

The social media behemoth will cut approximately 8,000 positions while simultaneously redirecting around 7,000 employees into artificial intelligence-focused roles. Another 6,000 open positions will remain unfilled as the company streamlines operations.

The restructuring memo

Meta's head of people, Janelle Gale, had outlined the company's rationale in an internal memo distributed in April. "We're doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we're making," Gale wrote, acknowledging the human cost of the decision.

"This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here," the memo added.

Employees receiving termination notices will be informed through email, according to reports. The layoffs mark a significant shift in how the tech industry is prioritising workforce composition, with profitability concerns clashing against the race to lead in artificial intelligence development.

AI investment intensifies

During Meta's first-quarter earnings call, Chief Financial Officer Susan Li signalled where the company's strategic focus now lies. The CFO emphasized Meta's commitment to deploying AI tools for enhancing productivity and engineering output across the organisation.

This pivot comes as Meta has substantially increased its capital expenditure guidance for 2026. The company now expects to spend between $125 billion and $145 billion, up from an earlier guidance of $115 billion to $135 billion. The increase is attributed to higher component pricing and escalating data centre costs tied to the company's aggressive AI expansion plans.

Workforce contraction over four years

Meta's headcount has contracted markedly over the past four years. The company employed 77,986 workers as of March 31, 2026, compared with 86,482 employees in 2022. This decline reflects broader cost-cutting measures initiated under CEO Mark Zuckerberg's "Year of Efficiency" initiative, which began in 2023.

Market reaction and broader trend

Meta's shares have faced significant pressure this year. The stock has declined nearly 9% since the beginning of 2026 and has fallen approximately 10% since the company's April earnings announcement, when market sentiment around tech valuations took a hit.

The layoffs at Meta are part of a wider wave of restructuring sweeping through the technology sector. LinkedIn, the professional networking platform owned by Microsoft, announced on Wednesday that it too would be reducing its workforce. The company is laying off more than 600 employees, according to reports citing the New York Post.

Industry-wide contraction signals

The twin announcements underscore a pivotal moment in the tech industry. While hiring freezes and modest layoffs have become commonplace since 2023, the scale and strategic nature of Meta's restructuring—coupled with simultaneous cost controls at other major platforms—suggest a more deliberate recalibration of the sector's priorities.

Companies are betting that leaner, AI-optimised workforces will deliver better returns than maintaining large engineering teams focused on traditional product development. Whether this gamble pays off may ultimately determine the competitive landscape of digital platforms over the next two to three years.