Top News

Meta won't rule out more layoffs after 10% job cuts
NewsBytes | May 1, 2026 4:39 PM CST



Meta won't rule out more layoffs after 10% job cuts
01 May 2026


Meta, the parent company of Facebook, is preparing to cut around 10% of its workforce this month.

The news was announced by Janelle Gale, Meta's Chief People Officer, during an internal meeting on Thursday.

She said while the business is strong and priorities change, competition is fierce and cost management will continue.


Gale can't guarantee no future layoffs
Future uncertainties


Gale couldn't guarantee no more layoffs in the future, saying "I'd love to say that there are no more layoffs, but I can't say something we can't deliver."

She also said Meta will "continue to evolve teams as needed" and "try to redeploy talent."

This comes as part of the company's ongoing investment in its Applied AI organization.


AI not driving cuts, says Zuckerberg
AI impact


During the meeting, Meta leaders clarified that the use of AI tokens would not be a factor in the upcoming layoffs.

However, CEO Mark Zuckerberg said that while AI automation isn't driving these cuts, it has made small teams much more efficient.

He also spoke about Meta's controversial plan to track employee keystrokes and mouse movements for improving its AI models.


Layoffs affect morale at Meta, admits Gale
Financial outlook


Meta CFO Susan Li had said during the first quarter earnings call that she doesn't know the ideal size of the company's headcount, which is currently over 77,000.

Despite the impending layoffs, Gale admitted they affect morale at Meta but the company tries to make tough situations like this "the best version possible."

She also revealed that Meta has tripled Consolidated Omnibus Budget Reconciliation Act (COBRA) healthcare coverage to 18 months.


Layoffs due to increased capital spending on AI
Layoff rationale


Zuckerberg explained the planned layoffs are due to increased capital spending on AI, not a corporate reshuffle.

He said, "If we're investing more in one area to serve our community, then that means we have less capital to allocate to the other. So that means we do need to take down the size of the company somewhat."

The cuts aren't related to Meta's reorganization of teams around a new "AI native" structure or efforts to build autonomous work agents.


READ NEXT
Cancel OK