Tech layoffs continue as Meta restructures for AI push, LinkedIn cuts over 600 jobs
San Francisco, May 20
Major technology companies in the United States are continuing workforce restructuring amid the growing focus on artificial intelligence, with Meta and LinkedIn announcing significant job cuts and organisational changes.
According to a report by NBC News, Meta is planning a major restructuring exercise that includes layoffs affecting nearly 10 per cent of its workforce while simultaneously shifting around 7,000 employees into AI-focused roles.
The report stated that Meta will reorganise these employees into four new AI-focused organisations as part of its broader strategy to increase investments in artificial intelligence.
As part of the restructuring, around 8,000 employees are expected to be laid off, while nearly 6,000 open positions will remain unfilled. Meta had earlier detailed the restructuring in an internal memo in April.
Janelle Gale, Meta's head of people, had said in the memo, "We're doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we're making."
"This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here," she added.
Affected employees are expected to receive details regarding the layoffs and restructuring through emails. The move reflects Meta's increasing focus on AI-driven growth across its businesses, including Facebook, Instagram and WhatsApp.
During the company's first-quarter 2026 earnings call, Meta Chief Financial Officer Susan Li said the company is focusing heavily on using AI tools to improve productivity and engineering output.
Meta has also increased its 2026 capital expenditure guidance to USD 125 billion-USD 145 billion from USD 115 billion-USD 135 billion, citing higher component pricing and additional data centre costs linked to AI expansion.
Despite aggressive AI investments, investor concerns remain. Meta's stock has declined nearly 9 per cent this year and has fallen almost 10 per cent since its April earnings announcement.
Analysts at JPMorgan Chase reportedly downgraded Meta shares, stating that the company faces a "more challenging path to returns" compared to rivals in the AI race. Analysts at Bank of America also questioned whether the scale of Meta's AI investments would remain sustainable in the long term.
Meta employed 77,986 workers as of the end of March 2026, compared with 86,482 employees in 2022.
Meanwhile, according to another report by the New York Post, LinkedIn has announced layoffs affecting more than 600 employees.
The report cited a Worker Adjustment and Retraining Notification (WARN) filing showing that 606 LinkedIn employees were informed of permanent layoffs, which will take effect on July 13.
The largest number of layoffs, around 352 employees, came from LinkedIn's Mountain View office in California, along with 66 remote employees based in the same city.
Another 108 employees were laid off in San Francisco, 59 in Sunnyvale and 21 in Carpinteria. The layoffs follow an internal memo from LinkedIn CEO Daniel Shapero, who said the company needed to "reinvent how we work" and shift investments toward infrastructure and long-term priorities.
The memo added that the company would reduce roles across marketing, engineering, product and other business functions.
LinkedIn is also reportedly reducing spending on marketing campaigns, vendor expenses, customer events and office space.
The layoffs come despite LinkedIn recently reporting 12 per cent year-on-year revenue growth in its third-quarter earnings. LinkedIn's parent company Microsoft has also announced buyout offers that could affect nearly 7 per cent of its 125,000-person workforce, or around 8,750 employees.
The buyout programme is aimed at employees eligible for early retirement based on age and years of service.
— ANI
Reader Comments
As someone working in tech in Bangalore, this news hits close to home. The AI hype is real and companies are ruthlessly cutting costs. But what I don't understand is - LinkedIn is actually doing well with 12% revenue growth, and they still laid off 600 people! Capitalism at its worst. 😞
It's a necessary evil for these companies. AI is the future and Meta has to invest heavily to compete with Microsoft, Google, and OpenAI. The capital expenditure of $125-145 billion is insane but that's what it takes to be a leader. The employees losing jobs is sad, but the market demands efficiency.
I'm a software engineer in Hyderabad and this trend is scary. But let's be honest, many of these jobs were created during the pandemic bubble. Companies hired too many people and now they are correcting. The real issue is for small towns in India - so many people left secure government jobs to join IT, and now they are at risk. Don't put all eggs in one basket, folks.
The article mentions Meta's stock has fallen 9% this year despite all this. That tells you that investors are skeptical too. These massive layoffs might be panic moves rather than smart strategy. Meanwhile, the CEO is still earning millions. Classic corporate greed.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.