Meta lays off staff as 'Layoff Day' arrives
On May 20, Meta began executing its long-anticipated layoffs, sending notification emails to approximately 10% of its 78,000 workforce, totaling around 8,000 positions. The communications were distributed in three waves at 4 a.m. local time across various regions, following a directive from HR chief Janelle Gale. This mass reduction concludes a month of uncertainty for employees who had been awaiting the outcome since the plan was first announced on April 23. To support affected staff, Meta has introduced a comprehensive severance package. In the United States, laid-off employees will receive 16 weeks of base pay, supplemented by two weeks of additional compensation for every year of continuous service. A significant highlight of the new policy is the extension of healthcare coverage to 18 months for employees and their families, which represents a tripling of the previous duration. International employees will receive comparable packages tailored to local regulations. While other tech firms like Block and Amazon offer varying severance terms, Meta's current plan aims to provide substantial financial security during the transition. Beyond immediate financial relief, the layoffs mark a strategic shift in Meta's organizational structure. Gale explained that the reductions target managerial roles to create flatter hierarchies. The company intends to reorganize into smaller, agile teams or cohorts capable of moving faster and assuming greater ownership of their work. This restructuring is designed to enhance efficiency and better align resources with the company's heavy investment in artificial intelligence. Meta has also signaled a major pivot in talent allocation, with plans to reassign more than 7,000 current employees to new initiatives focused on AI development. This realignment comes amidst a massive capital expenditure forecast, with Meta projecting 2026 spending to range between $125 billion and $145 billion as it competes in the AI race. Leadership has stated that these job cuts are intended to offset ongoing investments and streamline operations. Despite these changes, uncertainty remains. Internal communications indicate that while this round affects 10% of the staff, leaders have not ruled out further reductions in the future. During an internal meeting last month, Gale acknowledged the negative impact on morale, stating the company was striving to make a difficult situation as manageable as possible. As the notifications continue to arrive, the focus shifts to executing these organizational changes and integrating the remaining workforce into the newly defined strategic direction.
