Meta Plans 10% Workforce Cut to Fund Massive AI Investments

Meta Platforms is preparing to initiate a new round of layoffs targeting approximately 8,000 employees, representing 10% of its 79,000-strong workforce as of December 31. This workforce reduction coincides with Meta raising its 2026 capital expenditure (capex) guidance to a record range of $115-$135 billion to fund its AI infrastructure. While the first wave of cuts is scheduled for May 20, previous reports suggested the company might eventually lay off 20% or more of its global staff. These measures, which may extend into 2026, are designed to offset massive spending requirements within the competitive Big Tech landscape. Market participants are closely monitoring whether these efficiency drives can successfully balance the company's record-breaking capex and deliver sustainable long-term margins.