Meta cuts 8,000 jobs while pledging $130-$145 billion AI spend

Meta disclosed a May-time reduction of about 8,000 employees, roughly one-tenth of its staff, as part of an AI-first restructuring, while moving another 7,000 workers onto AI projects. Zuckerberg argued that AI is a net job creator, citing the need for construction crews, electricians and engineers to build and expand 32 data centres worldwide, a effort that will double the company’s power use to 14 gigawatts by 2027. The firm expects to spend between $130 billion and $145 billion on AI infrastructure in 2026, far exceeding last year’s outlay.

Financially, second-quarter free cash flow collapsed 91% to $784 million and the stock fell 10% after hours, even though revenue grew 28% to $60.8 billion. Zuckerberg said Meta plans to monetize excess compute by leasing it at a premium and is in preliminary discussions with Anthropic, but he cautioned against selling the capacity for short-term gain. The layoffs sparked internal dissent, with employees protesting a keystroke-tracking program and expressing frustration over abrupt early-morning termination notices.