Meta cuts 10% of workforce (8,000 jobs) as AI spending surges to $160 billion in 2026

Meta announced it is laying off approximately 8,000 employees—about 10% of its total workforce—while simultaneously increasing AI infrastructure spending from nearly $120 billion in 2025 to $160 billion in 2026. Microsoft is also planning similar workforce reductions, though specific numbers were not detailed in this report.

Both companies are shifting resources away from people and toward computing power and AI systems (like the machine-learning models that power features in Instagram, WhatsApp, and other products). This means fewer engineers maintaining existing features, but vastly more compute capacity to train and run newer AI capabilities.

For users of Meta products, this signals major AI feature launches coming in 2026—the company is betting its workforce cuts will fund advances in recommendation systems, chatbots, and content generation. For employees in tech, it shows that even at massive, profitable companies, AI investment can mean fewer headcount opportunities in traditional engineering roles. For investors, it demonstrates Meta's confidence that AI returns will outweigh near-term revenue dips from reduced human staff.