Meta Platforms (META), the tech giant behind Instagram and Facebook, is starting another major round of layoffs this week. The company is expected to cut around 8,000 roles starting Wednesday, while also canceling plans to hire for roughly 6,000 open positions.
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The move comes as Meta sharply increases spending on artificial intelligence (AI) development and projects. This shows the growing pressure AI is placing on jobs across the tech industry.
Meta AI Spending Surges While Cutting Jobs
Meta is now actively redirecting funds toward AI. Last month, the tech company raised its 2026 capital expenditure forecast by almost $10 billion. This brings its projected spending to almost $145 billion, a staggering amount that could take a toll on the tech giant’s growth if not managed properly.
Given the scale of these expenses, Meta is laying off some employees to improve efficiency. The firm also said these cuts will help offset the growing AI investments.
Meta previously laid off some of its employees in 2022, claiming that it was a mistake caused by overhiring during the pandemic in 2019. Mark Zuckerberg, the firm’s CEO, apologized to the affected employees at the time and said he took responsibility for the tepid expansion.
The cuts eventually grew to about 21,000 jobs and became part of what Meta called its “year of efficiency.” However, the company’s tone has changed significantly during the recent cuts.
The tech giant has already reduced staff in several areas this year. These include layoffs inside its Reality Labs division and content moderation unit.
At the same time, Meta’s executives have hinted that more layoffs may still happen later this year. They also mentioned the possibility of extra layoffs in August and again toward the fall.
Employees Fear AI Is Replacing Workers
The job cuts signal a broader shift happening across the technology industry. This is because more companies are automating tasks and investing heavily in AI systems.
Susan Li, Meta’s Chief of Finance, said on Meta’s earnings call that executives are uncertain about the firm’s ideal future workforce size. This is because AI is rapidly changing the operational needs of various roles.
That uncertainty has created growing anxiety inside Meta, with many workers now fearing AI could replace more white-collar jobs. These concerns also increased after Meta introduced an internal employee tracking system known as the Model Capability Initiative (MCI). The tool collects data like mouse movements and keystrokes from workplace computers. This will help the firm train AI systems to handle coding and office-related tasks.
However, some employees described the system as “dystopian”, a situation where employees are overly controlled, and their privacy is invaded. Therefore, some workers raised concerns about privacy and workplace surveillance. They also launched an internal petition urging the firm’s leadership to shut down the project.
The unease continues to grow as layoffs in more tech companies follow the same pattern. According to Layoffs.fyi, nearly 110,000 tech workers have already lost their jobs across 137 companies in the U.S. this year.
At the same time, analysts in the tech sector say investors are rewarding firms that use AI to reduce costs and improve efficiency. This continues to rise even as employees worry about being replaced by machines.
Is META a Good Buy?
Wall Street analysts rate Meta Platforms (META) a Strong Buy based on TipRanks consensus data. The stock currently trades around $610.12 and has an average 12-month price target of $817.71, representing 34% upside. For more information on the performance, price target, and rating of this stock, visit TipRanks Stocks Comparison Center.
