Meta Cuts 8,000 Jobs Amid Record Revenue as Zuckerberg Bets Big on AI Infrastructure
May 18, 2026 – 6:37 pm
- Summary: Meta will initiate cutting approximately 8,000 jobs starting May 20, despite reporting record $56.31 billion quarterly revenue. This move supports Mark Zuckerberg’s substantial bet on AI infrastructure, estimated at up to $145 billion in 2026.
Key Points:
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Job Cuts: Meta will lay off 8,000 employees—the largest single round of layoffs since 2023—and cancel 6,000 open job requisitions, resulting in a total headcount reduction of 14,000.
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Financial Performance: The company’s first-quarter 2026 revenue reached $56.31 billion, with a net income of $26.8 billion. Meta’s full-year 2025 revenue stood at $201 billion, up 22% year-over-year.
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AI Infrastructure Investment: Meta has raised its 2026 capital expenditure guidance to $125-$145 billion, a significant increase from previous years. The funds will primarily support data centers, Nvidia GPUs, custom silicon, and infrastructure for Llama model ecosystems and recommendation systems.
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Cost Savings: Bank of America estimates the layoffs could generate $7-$8 billion in annualized savings, contributing to the operating margin protection CFO Susan Li has promised.
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Uncertain Future: Li acknowledged that executives are unsure about the optimal size of the company in the future, despite reporting record profits.