Indonesian Political, Business & Finance News

Meta to Lay Off 8,000 Workers Amid Surging AI Investments

| | Source: KOMPAS Translated from Indonesian | Business
Meta to Lay Off 8,000 Workers Amid Surging AI Investments
Image: KOMPAS

JAKARTA, KOMPAS.com — A wave of layoffs is once again shaking the global technology industry after Meta Platforms announced plans to cut around 10 per cent of its workforce, or approximately 8,000 employees, starting 20 May 2026.

In addition to reducing staff, the parent company of Facebook, Instagram, and WhatsApp is also halting recruitment for around 6,000 previously open positions.

This step marks Meta’s latest major restructuring, amid a surge in the company’s investments in artificial intelligence (AI) and data centre infrastructure.

“We are making difficult decisions to align resources with our long-term strategic priorities,” stated an internal Meta memo, quoted from Business Insider, Friday (24/4/2026).

This layoff plan comes as Meta is aggressively increasing its capital expenditure (capex).

The company is reportedly preparing capital spending of $115 billion or equivalent to approximately Rp 1,987.9 trillion (assuming an exchange rate of Rp 17,287 per US dollar) to $135 billion or around Rp 2,333.7 trillion in 2026, a sharp rise compared to the previous year, mainly to support AI development, chips, and data centres.

CNN reported that this move reinforces signals that major technology companies are beginning to reorganise their workforce structures as AI takes on a larger role in company productivity.

Indeed, this layoff is said not to be mere routine efficiency, but part of a business repositioning towards operations that are more automation- and AI technology-based.

Meta’s layoffs occur as Chief Executive Officer Mark Zuckerberg accelerates the company’s ambitions in the AI field.

According to a CBS News report, this restructuring is seen as closely related to efforts to redirect resources towards AI development, although the company does not explicitly cite AI as the formal reason for the staff cuts.

Dan Ives from Wedbush Securities views Meta’s step as the company striving to maintain cost discipline while sustaining aggressive AI spending.

According to him, the market sees cost control as part of the strategy to support investments in new technologies.

View JSON | Print