NPR (John Ruwitch) - Meta will lay off 10% of its staff
The cuts follow losses in two pivotal court cases and the company's push to invest in artificial intelligence.
The cuts follow losses in two pivotal court cases and the company's push to invest in artificial intelligence.
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Meta told staff Thursday it plans to lay off roughly 8,000 people, or around 10% of the company, two sources confirmed to Axios. Why it matters: The cuts come as Meta looks to offset rising AI infrastructure costs. Zoom out: Meta's capital expenditures have ballooned in recent years, sparking investor concerns that excessive AI spending will eat into profits. - In January, the company said it expects capex to soar by at least 60% this year compared with 2025, "driven by increased investment to support our Meta Superintelligence Labs efforts and core business." - Free cash flow, meanwhile, is expected to plunge 83% year over year. Reality check: Meta is no stranger to large-scale cuts. - Layoffs affecting more than 20,000 workers…
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