Meta plans major layoffs amid AI investment push

ISLAMABAD: (Web Desk) – Meta Platforms is preparing to cut around 10 percent of its workforce as it ramps up investment in artificial intelligence, aiming to boost efficiency and productivity.

According to reports, the company plans to lay off approximately 8,000 employees, while also leaving several thousand roles unfilled in the coming months. The move comes as CEO Mark Zuckerberg intensifies efforts to develop “superintelligence,” positioning Meta in a high-stakes AI race against rivals such as Amazon, Google, Microsoft, and OpenAI.

The cost-cutting measures follow a surge in spending on AI infrastructure. Meta recently reported quarterly costs of $35.15 billion, marking a 40 percent increase year-on-year, with capital expenditures of $22.14 billion largely driven by data centers and AI development.

The company expects its total capital spending to reach between $115 billion and $135 billion this fiscal year, fueled by investments in its Superintelligence Labs and core platforms.

PSL 11: Fans likely to be allowed to enter

Zuckerberg has emphasized his long-term vision, stating that advancing personal superintelligence will be a major focus heading into 2026.

Meanwhile, Microsoft is also reportedly considering workforce reductions through voluntary buyouts, potentially targeting around seven percent of its US employees. The company, which has similarly invested billions into AI, has not officially commented on the reports.

Both Meta and Microsoft are expected to release their quarterly earnings next week, with investors closely watching how rising AI costs and restructuring efforts impact financial performance.

Analysts suggest that Meta’s layoffs are part of a broader strategy to integrate AI tools into operations, automating tasks that previously required large teams. This shift is expected to streamline workflows, reduce costs, and enhance productivity.

At the same time, Meta is exploring new revenue streams, including AI-powered advertising improvements and smart devices developed in partnership with Ray-Ban maker EssilorLuxottica.

Industry experts believe further layoffs could follow as the company continues to restructure around AI-driven efficiencies.