The cost of chasing the AI future is becoming clearer at Meta.
The company is set to cut roughly 10 per cent of its global workforce, impacting around 8,000 employees, as it pours billions into artificial intelligence and restructures its operations.
The layoffs, expected to begin on May 20, come at a time when the tech giant is aggressively repositioning itself in the AI race. In this area, competitors like OpenAI, Google, and Anthropic have already gained significant ground.
While job cuts in the tech industry are no longer unusual, Meta’s latest move stands out for its scale and timing. The company is not just trimming costs; it is increasingly relying on AI to replace tasks that were once handled by teams.
Meta layoffs: Severance pay for affected employees
For those affected, Meta has outlined what it calls a “generous” severance package, particularly for employees in the United States. The company will offer 16 weeks of base pay, plus an additional two weeks’ salary for each year of service, according to the official memo.
Healthcare support will also be extended, with Meta covering COBRA insurance costs for employees and their families for up to 18 months. This provision is intended to ease the transition period for workers navigating sudden job loss.
Outside the US, severance packages will follow similar structures but vary depending on local regulations and employment norms. Meta has said it will provide further clarity closer to the implementation date.
In addition to financial support, the company has committed to offering career services to help affected employees find new roles. Immigration assistance will also be made available where required, acknowledging the global nature of its workforce.
The internal memo announcing the layoffs, signed by a senior executive, admitted that the uncertainty leading up to the cuts could be unsettling. Employees have been told that more detailed information will be shared in the coming weeks, though for now, many are left waiting.
Meta freezes hiring
The layoffs are only one part of a broader restructuring plan. Meta is also freezing hiring for approximately 6,000 open positions, signalling a sharp shift in how it plans to allocate resources.
CEO Mark Zuckerberg has previously hinted at this direction. He has repeatedly stressed that AI-driven tools are dramatically improving productivity, allowing fewer people to accomplish more work.
According to Zuckerberg, 2026 could mark a turning point where AI fundamentally reshapes workplace dynamics. Tasks that once required entire teams are increasingly being handled by individuals equipped with advanced AI systems.
However, the move also underscores a broader trend across the industry. As companies race to build and deploy advanced AI systems, the human cost of that transition is becoming harder to ignore.
For Meta employees, the coming weeks will bring clarity, but also difficult adjustments. For the wider industry, the AI era is not just about innovation; it is about transformation, and not everyone will come along for the ride.
