Meta eyes leaner workforce as AI spending accelerates in global tech race

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Meta Platforms is preparing to cut roughly 10% of its workforce, a move seen as part of a broader effort to redirect resources toward artificial intelligence development while tightening operational efficiency.

Citing a source familiar with the matter, reports indicate the company could lay off around 8,000 employees, while also leaving thousands of roles unfilled in the coming months. The planned reduction reflects a shift in priorities as Meta doubles down on building advanced AI systems.

At the center of this push is CEO Mark Zuckerberg’s long-term goal of developing what he has described as “superintelligence”—a next-generation form of AI that goes beyond current capabilities. The strategy places Meta in direct competition with other major players such as Microsoft, Google, Amazon, and OpenAI, all of which are investing heavily in AI infrastructure and applications.

The restructuring comes amid rising costs tied to this ambition. In its most recent financial report, Meta disclosed expenses of over $35 billion for the quarter, up significantly year-on-year. A large portion of this spending is tied to capital expenditures—particularly the construction of data centers and computing infrastructure needed to train and run large-scale AI models.

For the full fiscal year, Meta expects capital expenditures to reach between $115 billion and $135 billion, signaling one of the most aggressive AI investment cycles in the company’s history. These investments are largely funneled into initiatives such as its Superintelligence Labs and improvements across its core platforms.

Despite the rising costs, the company has continued to post strong revenue growth, supported in part by improvements in its advertising systems—many of which are already powered by AI. Analysts expect further gains in ad efficiency and targeting as Meta deepens its use of machine learning across its ecosystem.

The company is also exploring new AI-driven product opportunities. Among these are smart glasses developed in partnership with EssilorLuxottica, which could serve as a platform for integrating AI assistants into everyday consumer experiences.

Meanwhile, Microsoft is reportedly pursuing its own workforce adjustments, offering voluntary buyouts to certain US-based employees. The move comes as the company continues to invest billions into AI, particularly through its partnerships and cloud infrastructure expansion.

Across the industry, the trend is becoming more pronounced: as companies scale up AI investments, workforce realignments are emerging as a parallel strategy—balancing the high cost of innovation with the need to maintain profitability.

SOURCE: Online News