As Meta lays off 10%, 7,000 employees will be moved into AI roles, source says

Meta is restructuring its workforce by shifting 7,000 employees into artificial intelligence roles as part of a 10% layoff plan, according to a source familiar with the matter. The company will consolidate these employees into four new AI-focused organizations, while also eliminating 8,000 jobs and freezing 6,000 open positions. Employees affected by the layoffs will receive notifications early Wednesday morning, with details varying by region. The move follows an internal memo from April outlining the restructuring, which Meta confirmed to NBC News. The company cited the need for greater efficiency and to fund AI investments, acknowledging the difficult trade-off of letting go of employees who contributed significantly. Meta previously laid off hundreds of workers in March, targeting departments like Reality Labs, Facebook’s social teams, sales, recruiting, and global operations. During a first-quarter 2026 earnings call, Chief Financial Officer Susan Li emphasized Meta’s focus on AI-driven productivity, stating that engineers were already delivering accelerated output. The company also increased its 2026 capital expenditures to $125 billion–$145 billion, up from $115 billion–$135 billion, citing higher component pricing and data center costs for future AI capacity. Despite the AI push, Meta’s stock has declined nearly 9% year-to-date, ranking fifth among the Magnificent 7 tech stocks. Since its April earnings report, the stock dropped another 10%, prompting analysts to downgrade shares. JPMorgan Chase warned Meta faces a more challenging path to returns compared to rivals, while Bank of America analysts questioned the long-term sustainability of the AI investment strategy. As of March 2026, Meta employed 77,986 workers, down from a peak of 86,482 in 2022. The restructuring reflects a broader trend in Silicon Valley, where companies are prioritizing AI while cutting other areas to fund growth. Investors remain cautious, with concerns over whether Meta’s AI investments will yield sufficient returns compared to cloud providers.