Meta to Lay Off 10% of Workforce…Are the Rumors True?

Photo from Dima Solomin via Unsplash

By Michaela Gordoni

As Meta goes full speed ahead for AI, Deadline says the tech giant plans to lay off 10% of its workforce.

Both Bloomberg and Reuters confirmed staff reductions are expected. The company made employees aware of the cutbacks in a memo.

On May 20, Meta will let go of approximately 8,000 employees and close 6,000 open roles.

Janelle Gale, Meta’s chief people officer, wrote in the memo that the layoffs are “part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making…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.”

Related: Mark Zuckerberg Shares Vision for the Future of Meta’s AI Chatbot

Microsoft is on the same track. The tech company will offer buyouts to 7% of its workforce, which is nearly 9,000 employees, Deadline reported.

Meta previously announced it plan to double its AI budget to $135 billion this year. Meta execs are expected to elaborate on this year’s strategy with the introduction of its first-quarter earnings on Wednesday.

Some Meta employees have expressed relief after Meta sent the memo. Layoffs had been discussed internally for weeks. On the other hand, others are anxious as they have to wait a month, or “28 days of hell” as one worker put it, to find out if they are one of the employees who will be laid off.

One employee wrote, “I feel more anxious about surviving this layoff because we all know it’s just gonna get worse for those of us who are left behind and have to absorb even more work, amongst other declining factors in this sad fearful company.”

More layoffs May follow after May 20. The company’s last mass lay-off was in 2022, AOL reported. It let go of 13% of its employees and cut another 10,000 jobs.

Gale also said in the memo, “We will support those who are laid off with a generous severance package which, in the US, will include 16 weeks base pay plus two weeks for every year of employment. We will also cover the cost of COBRA health care coverage for US employees and their families for 18 months…We will also offer career services to support people in finding another role, and immigration support for those who need it.”

She continued, “I know this leaves everyone with nearly a month of ambiguity which is incredibly unsettling. We will try to answer your questions…”

These layoffs will no doubt effect the tech force, but time will tell whether Meta will come to regret its decision, as some tech companies have overestimated confidence in AI and have already had to rehire loads of workers after mass layoffs.

Read Next: Meta Developing Labels to Identify AI-Generated Content

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