Meta
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Meta is cutting roughly 8,000 jobs even as it reports record profits, a contrast that has fuelled frustration inside the company and, according to reporting, left some employees privately saying they would rather be included in the layoffs than remain on the payroll.

The cuts come alongside strong earnings and continued heavy spending on artificial intelligence, sharpening concerns over priorities within one of Silicon Valley's most profitable firms.

The company reported first-quarter revenue of $56.31 billion (£41.94 billion) and net income of $26.8 billion (£19.96 billion), even as it moves to reduce headcount by about 10%. Executives have framed the decision as part of a wider push to run a leaner organisation while absorbing rising costs tied to AI development and infrastructure.

Layoffs Amid Strong Earnings

Reporting from WIRED described a marked decline in morale following the announcement, with current and former employees painting a bleak picture of internal sentiment.

One Instagram employee said 'everyone is unhappy', a remark reflecting broader frustration over repeated restructuring and job insecurity. According to the same reporting, some staff have suggested they would prefer to be laid off, given that severance packages include 16 weeks of pay and up to 18 months of health coverage.

Those comments underline the depth of dissatisfaction reported internally. While Meta has presented the cuts as an efficiency measure, employees have been left weighing job security against relatively generous exit terms.

The company has defended the layoffs as part of an ongoing effort to streamline operations. Chief People Officer Janelle Gale and Chief Financial Officer Susan Li have both pointed to the need for a leaner structure as spending pressures rise elsewhere in the business.

AI Spending and Internal Tension

A key source of tension inside Meta is its rapidly expanding investment in artificial intelligence.

The company expects AI-related capital expenditure to reach between $125 billion (£93.11 billion) and $145 billion (£108 billion) this year, reflecting a sharp increase as it competes with other major technology firms in the AI sector.

At the same time, CEO Mark Zuckerberg has been personally involved in recruiting top AI talent, with some reported compensation packages reaching as high as $100 million (£74.49 million) for key researchers.

For employees affected by layoffs, the contrast has become difficult to ignore. While roles are being eliminated across parts of the organisation, Meta continues to invest heavily in a small group of highly paid specialists building its AI systems.

Workers interviewed by WIRED questioned the balance between cost-cutting in existing teams and aggressive spending on future-focused divisions, particularly as the company positions artificial intelligence as its next major growth engine.

Workplace Monitoring Adds Pressure

Concerns among staff have also been heightened by Meta's rollout of new workplace monitoring tools.

In April, the company introduced its Model Capability Initiative on employee devices in the United States. According to reporting, the system can track keystrokes, mouse movements, clicks and periodic screenshots from applications including Gmail and Slack.

Meta has said the programme is intended to help train AI systems designed to understand and replicate workplace tasks. However, employees have raised concerns about the extent of data collection and the lack of an opt-out for US staff.

Workers in Europe are not included in the programme due to stricter data protection rules under GDPR, a distinction that has further fuelled internal frustration.

Some employees have reportedly responded by distributing flyers describing Meta as an 'Employee Data Extraction Factory' and encouraging colleagues to sign internal petitions opposing the initiative.

Efficiency Drive Continues

The latest layoffs are part of a broader restructuring effort that has been underway for several years.

Zuckerberg's so-called 'Year of Efficiency' in 2023 resulted in around 21,000 job losses across multiple rounds of cuts. According to estimates from Fortune, Meta has reduced its workforce by approximately 25,000 positions since 2022, meaning the latest round would push total job losses beyond 33,000.

What distinguishes the current cuts is the company's financial position. Unlike earlier rounds driven by slowing growth concerns across the tech sector, Meta is now reporting strong revenue growth alongside record profitability.

Despite this, executives maintain that cost discipline remains necessary as AI infrastructure spending accelerates. Zuckerberg has not ruled out further restructuring if investment demands continue to rise.

For now, Meta is describing the layoffs as part of a long-term efficiency strategy. But internal accounts suggest many employees see a widening gap between the company's financial success, its AI ambitions and the experience of the workforce expected to deliver both.

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