Additional Coverage:
Meta Plans Major Reorganization to Focus on AI, Announces Significant Layoffs
Meta is undergoing a substantial restructuring aimed at intensifying its focus on artificial intelligence (AI). According to an insider familiar with the plans, the company will shift 7,000 employees into AI-related roles, consolidating these teams into four new organizational units. This reorganization, expected to be officially announced on Wednesday, will also involve layoffs affecting roughly 10% of Meta’s workforce.
The company first outlined these plans in an internal memo circulated in April, which detailed the intention to lay off about 8,000 employees while leaving approximately 6,000 open positions unfilled. Meta confirmed the authenticity of this memo to NBC News.
Janelle Gale, Meta’s head of people, acknowledged the difficulty of these decisions in the memo. “We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” Gale said. “This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here.”
Employees affected by the layoffs are expected to receive detailed notifications via email early Wednesday, though the timing and specifics may vary by region.
This move reflects Meta’s broader strategy to pivot toward AI technologies while scaling back other areas of its extensive operations, which include platforms like Facebook, Instagram, and WhatsApp. Similar shifts have been seen across Silicon Valley as companies increasingly prioritize AI’s potential to transform various sectors.
Earlier this year, Meta conducted smaller layoffs in March affecting several departments, including its Reality Labs virtual reality division, social teams, sales, recruiting, and global operations, as part of ongoing restructuring efforts.
During Meta’s first-quarter 2026 earnings call last month, CFO Susan Li highlighted the company’s commitment to AI. “We’re very focused on leveraging AI tools to substantially increase our productivity, and we’re seeing that reflected in the accelerating output from our engineers,” she said. Li also noted that Meta will continue to evaluate its organizational structure to best meet its priorities in the coming years.
Meta has also raised its capital expenditure forecast for 2026 to between $125 billion and $145 billion, up from previous estimates of $115 billion to $135 billion. This increase is primarily driven by higher component costs and additional data center investments to support future capacity, according to the company’s first-quarter report.
Despite these investments, Meta’s stock performance has lagged this year, declining nearly 9% and ranking fifth among the “Magnificent 7” tech giants, ahead only of Tesla and Microsoft. Following the recent earnings report, shares have fallen nearly 10%.
Analysts have expressed concerns about Meta’s strategy and long-term outlook. JPMorgan Chase downgraded Meta shares, citing a more challenging path to returns compared to competitors in the AI space. Similarly, Bank of America analysts questioned the sustainability of Meta’s approach, noting that while the company is investing heavily in AI capacity, the returns are less clear compared to cloud service providers.
As of the end of March 2026, Meta employed 77,986 people, down from a peak of 86,482 in 2022, reflecting the ongoing workforce reductions as part of its transformation.