Meta is laying off approximately 8,000 employees—about 10% of its workforce—on May 20, 2026, with severance emails sent at 4 AM local time across North America. The move is part of a strategic pivot toward AI, with the company redirecting $125–145 billion in 2026 capital expenditure toward AI data centers, custom chips, and model training. Roughly 7,000 remaining employees will be reassigned into four new AI-focused organizations designed with flatter hierarchies and fewer managers.

HR chief Janelle Gale described the restructuring as a productivity-driven transformation, not just cost-cutting, citing the ability of teams to operate in smaller, more agile units. Employees in the US will receive 16 weeks of base pay plus two additional weeks per year of service, along with healthcare and career support. International packages will follow local regulations.

The layoffs follow growing internal tension, including a recent employee petition against the Model Capability Initiative, an AI training tool that logs user behavior. CEO Mark Zuckerberg has clarified the data is used for AI training, not surveillance. Employee morale has declined, with internal ratings down sharply since 2024. Leadership has signaled more cuts could come in August and later this year as Meta aligns its workforce with its massive AI investment.