According to a Reuters report, the large-scale workforce reduction could begin around May 20. In the initial phase, Meta is preparing to cut nearly 10% of its total global workforce. Reports also suggest that the company may undertake another round of layoffs in the second half of the year, although the exact dates and final number of affected employees could still change.

AI Investment and Efficiency Seen as Main Reasons

Meta CEO Mark Zuckerberg is currently investing billions of dollars into Artificial Intelligence (AI). Company executives believe that with rapidly improving AI capabilities, future management layers can be reduced significantly, while AI-assisted employees can deliver greater productivity and efficiency.

Earlier reports had also indicated that Meta could eventually cut 20% or more of its total workforce as the company aggressively shifts toward automation, AI-driven operations, and leaner corporate structures.

Amazon and The Walt Disney Company Have Also Reduced Staff

The ongoing layoff wave is not limited to Meta alone. In recent months, Amazon has also removed nearly 30,000 corporate employees, roughly 10% of its white-collar staff.

Similarly, The Walt Disney Company has announced the elimination of around 1,000 jobs from its television business, ESPN, and technology divisions, as major corporations continue to tighten costs while funnelling capital into digital transformation and AI.

More Than 73,000 People Have Lost Jobs So Far This Year

According to layoff tracking platform Layoffs.fyi, more than 73,000 employees across the technology industry have already lost their jobs so far this year.

In 2024, that figure had crossed 153,000. Despite spending heavily on AI, Meta earned nearly $200 billion in revenue and $60 billion in profit last year, underscoring that the layoffs are being driven less by losses and more by a strategic restructuring of future business priorities.

Sama Also Announces Layoffs After Meta Contract Ends

Sama, the company that handled content moderation work for Facebook, has also issued layoff notices to more than 1,100 employees.

This decision came after Meta ended its contract with Sama. The company has stated that it is extending support to affected workers during the transition.

What Do ‘Layoff’ and ‘White-Collar Job’ Mean?

Layoff:
A layoff refers to a situation where a company terminates employees because of poor financial conditions, restructuring, automation, or reduced workload. It is not related to an employee’s poor performance.

White-Collar Job:
A white-collar job generally refers to professional, managerial, administrative, or desk-based work performed in office environments. In contrast, blue-collar workers are usually engaged in manual labor, industrial work, or manufacturing activities.

The post Meta Platforms Plans to Lay Off 8,000 Employees: Workforce Reduction Process to Begin on May 20; 10% Global Staff to Be Cut appeared first on AI Global India.