Meta is cutting around 8,000 jobs this week, roughly 10% of its total workforce. The company has also canceled plans to fill 6,000 open positions, a move first flagged in an internal memo in April.
The reductions are scheduled to begin Wednesday. They come after Meta already trimmed around 1,000 workers in January through its Reality Labs unit, followed by more cuts in March.
This is not the first time Meta has gone through a major reduction. Back in late 2022, CEO Mark Zuckerberg cut 21,000 jobs and openly said, “I got this wrong.” The tone now is different. This time, the company told staff the cuts are “part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making.”
META stock closed Friday at $614.23, down slightly on the day.
The key driver behind these cuts is a major ramp-up in AI spending. Last month, Meta raised its 2026 capital expenditure guidance by as much as $10 billion. Total spend is now seen reaching as high as $145 billion.
CFO Susan Li spoke about this during the first-quarter earnings call. She said the company has “continued to underestimate our compute needs” even as it has ramped up capacity. She also said executives “don’t really know what the optimal size of the company will be in the future.”
Current and former employees told CNBC that more layoffs are expected this year, including a possible round in August and another later in 2026.
So far in 2026, nearly 110,000 layoffs have hit 137 tech companies, according to Layoffs.fyi. That compares to roughly 125,000 cuts throughout all of 2025.
Meta is also moving away from using third-party vendors and contractors for content moderation work.
A new internal tool has added to staff unease. CNBC reported that Meta’s Model Capability Initiative tracks worker activity, including mouse movements and keystrokes, to help train AI agents for coding and office tasks.
Some employees called it “dystopian.” A worker petition warned that the tool raises “serious concerns around privacy, consent, and trust in the workplace.”
Morale appears strained. Reports suggest more cuts could come in August and again in the fall, which has added to anxiety inside the company.
On Wall Street, the picture looks different. Of 34 analysts covering META, 30 rate it a Buy and four rate it a Hold. The average price target sits at $829.97, implying upside of around 36% from Friday’s close of $614.23.
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