Meta Platforms plans to cut about 10% of its workforce to offset pressure from AI-related expenses, affecting approximately 8,000 positions

According to the Zhitong Finance APP, in the context of rising investments in artificial intelligence, Meta Platforms (META.US) has announced a new round of large-scale layoffs to enhance operational efficiency and offset the pressure of AI-related expenditures. According to an internal memo sent to employees on Thursday, Meta plans to cut about 10% of its workforce, affecting approximately 8,000 positions, with layoffs set to take effect on May 20. The company will also cancel the planned hiring of 6,000 vacant positions.

This is the latest move by Mark Zuckerberg to advance the "efficiency-first" strategy, highlighting how tech giants are creating space for high-intensity capital expenditures by cutting traditional costs amid the AI arms race. Based on Meta's total employee count of nearly 79,000 at the beginning of the year, this adjustment is significant and is seen by the market as an important signal of the company's proactive cost structure optimization during a high-investment cycle.

Meta stated that the layoffs aim to support the company's more efficient operations and provide funding for other key investments. Chief Human Resources Officer Janelle Gale mentioned in the memo that the company is continuously working to improve efficiency, and layoffs are part of balancing resource allocation to offset the cost pressures from other significant investments.

In fact, the core background driving this adjustment is Meta's continued investment in the field of artificial intelligence. In recent years, Zuckerberg has heavily invested in advanced AI models, large language models, and chatbot development, pouring substantial funds into related talent and infrastructure. The company had previously anticipated that capital expenditures would reach a record high this year and announced several AI collaboration deals worth billions of dollars in recent months. Meanwhile, the company has also encouraged employees to use AI agents more for tasks like coding to enhance productivity.

The market generally believes that Meta is trying to provide longer-term support for its AI strategy by cutting labor costs. As competition in generative artificial intelligence heats up, the resource allocation of tech giants is undergoing structural changes, shifting from traditional expansion to a parallel model of "layoffs + capital investment."

It is worth noting that Meta employees have been under the shadow of layoff concerns this year, with previous job cuts occurring in Reality Labs and other teams. Gale stated that the company announced the plan in advance because the related news had been leaked. Earlier this month, Reuters was the first to report on Meta's plans for layoffs.

In the memo, she candidly acknowledged, "This is undoubtedly unwelcome news and will make everyone feel uneasy, but under the current circumstances, this is the best path forward that we believe."

Meta is not alone in this regard. Faced with profit pressures from high AI investments, other large tech companies are also simultaneously cutting costs. Microsoft (MSFT.US) also announced on Thursday that it would offer voluntary departure plans to thousands of U.S. employees, indicating that the tech industry is generally optimizing its workforce structure to make way for AI investments.

Analysts point out that in the context of the capital market's heightened focus on the commercialization returns of AI, investors' tolerance for tech giants is increasingly based on the premise that "high investment must be accompanied by high efficiency." Therefore, layoffs are no longer simply seen as a signal of weak demand but may instead be interpreted as a tool for managing profit margins Meta will announce its first-quarter results next week. In addition to the growth of its advertising business, the market's focus will also be on the scale of AI investments, capital expenditure guidance, and the potential impact of recent layoffs on profit margins. If the company can demonstrate that cost reduction and AI investment can coexist to support a medium- to long-term growth logic, it may help alleviate market concerns about its "burning money for the future."

As of Thursday's close, Meta fell 2.31%, closing at $659.15