Meta Platforms Inc. said in an internal memo distributed to staff on Thursday that it will eliminate approximately 10% of its workforce - about 8,000 positions - and will forgo hiring for some 6,000 open roles it had planned to fill. The company set May 20 as the date the reductions will take effect.
The memo, authored by the company's chief people officer, framed the actions as part of an effort to run the business more efficiently and to offset substantial investments in artificial intelligence. It notes senior leadership is allocating resources toward the talent and infrastructure needed to build AI products such as large language models and chatbots, and that the company has already signaled a record level of capital spending for the year. The memo also referenced multibillion-dollar agreements the company has announced in recent months with AI partners.
Executives have encouraged employees to use internal AI agents to assist with tasks including writing code, the memo said. The company explained it was announcing the reductions earlier than planned because details of the strategy had already leaked, and acknowledged the announcement would create unease among employees while saying leadership believes the steps are necessary.
Meta reported nearly 79,000 employees at the start of the year. The company is due to release its first quarter earnings next week.
Severance and benefits
For U.S.-based employees who are laid off, the company outlined a severance package that includes 16 weeks of base pay plus an additional two weeks of pay for each year of employment. Meta will also pay for COBRA health insurance coverage for those U.S. employees and their families for 18 months. The memo states that separation packages for employees outside the United States will be broadly similar but will vary by country.
Context provided by leadership
In the memo, leadership tied the reduction in headcount to an effort to balance ongoing investments in AI and related infrastructure with a need to operate more efficiently. The company emphasized that the decision was targeted at offsetting other investments the business is making.
Implications for operations
Management indicated these changes are intended to free up resources to support continued development of AI capabilities and the accompanying infrastructure and talent commitments. The company said the move includes both layoffs and a deliberate pause on hiring for thousands of previously approved openings.