Meta is planning to cut around 10 percent of its workforce next month, equivalent to roughly 8,000 jobs, as part of efforts to reduce costs amid heavy investment in artificial intelligence, according to the Financial Times.
The social media giant, valued at about $1.7 trillion, informed employees in an internal memo on Thursday that the layoffs are aimed at improving efficiency and offsetting growing investments.
The company also decided not to fill around 6,000 previously planned positions, according to sources familiar with the matter.
The move comes as CEO Mark Zuckerberg continues to pour billions into AI infrastructure, including expensive data centers and hiring top talent to compete with rivals such as Google and OpenAI in developing advanced models.
Meta had previously indicated in January that its capital expenditures could nearly double to reach $135 billion this year, reflecting the scale of its AI ambitions.
Meanwhile, Microsoft announced earlier the same day a voluntary retirement program targeting thousands of employees in the United States.
According to a source cited by Fortune, about 7 percent of its US workforce could be eligible, representing approximately 8,750 employees out of a total of 125,000 as of mid-2025.
Tech giants are increasingly looking to cut costs while investing heavily in data centers and infrastructure to meet rising demand for AI services.
Microsoft, like its competitors, is accelerating global data center expansion and recently unveiled new AI investments in Japan and Australia.
Meta has also forecast record capital spending this year and signed several multibillion-dollar AI deals in recent months, underscoring the intense competition shaping the future of the industry.
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