On May 20, 2026, Meta laid off approximately 8,000 employees while simultaneously reassigning another 7,000 workers into newly formed AI divisions. Together, these moves affected nearly one in five people on Meta’s entire payroll.
The company had roughly 78,000 employees before the restructuring began. As such, about 10% of its employees were laid off, with the Facebook-owner saying the workforce reduction is tied to a broader internal reorganization designed to free up resources for AI investments.
Engineering and Product Teams Bore the Biggest Impact
Engineering and product divisions bore a disproportionate share of the reductions, according to people familiar with the matter who spoke to Bloomberg. These are among Meta’s most senior technical workers, making the scale of the cuts particularly striking, especially when juxtaposed with the fact the company is also spending more on AI infrastructure than at any previous point in its history.
In an internal memo seen by Bloomberg, Meta’s Chief People Officer Janelle Gale said many teams can now operate with a flatter structure, using smaller pods and cohorts that move faster and carry more ownership over their work. Managerial layers are also being reduced across the company as part of the same restructuring.
Where the 7,000 Employees Are Going
The 7,000 workers being reassigned are moving into three newly created groups – Applied AI Engineering, Agent Transformation Accelerator XFN, and Central Analytics. This change is a significant redefinition of what Meta expects its workforce to look like going forward.
What Laid-Off Employees Will Receive
U.S.-based employees who were let go will receive 16 weeks of base pay, plus two additional weeks for every year they worked at Meta. Healthcare coverage will continue for employees and their families, alongside career transition support. The healthcare extension reportedly runs for 18 months, which is three times longer than what is typically offered in the industry. Workers outside the United States will receive packages aligned with local labor laws.
The AI Spending That Is Driving All of This
Meta has projected capital expenditure for 2026 between $125 billion and $145 billion, with much of that directed toward AI data centers, custom silicon, and large-scale model training. During the company’s latest earnings call, CFO Susan Li said Meta was still evaluating what its ideal workforce size should look like as AI tools continue changing productivity expectations across the business.
Meta’s restructuring is part of a broader 2026 tech layoff wave that has eliminated over 113,000 jobs across the industry, averaging 825 jobs per day since January. Other major firms, including Intuit, Amazon, and Pinterest, have also announced job cuts in recent months. What distinguishes Meta’s case is the scale and the direct connection the company says is between the job losses and its AI transformation strategy.
On the other hand, Zuckerberg has told employees in an internal memo that he does not expect further company-wide layoffs this year.
“I want to be clear that we do not expect other company-wide layoffs this year,” he said in a memo seen by Reuters. “I also want to acknowledge that we haven’t been as clear as we aspire to be in our communication, and that’s one area I want to make sure we improve.”
