Meta is moving forward with a round of workforce cuts and organizational changes on May 20, according to an internal memo seen by Reuters. The memo says the company will lay off about 10% of employees this week, shift about 7,000 staff into AI-related initiatives, and eliminate many managerial roles as it reshapes teams around faster, flatter structures. The changes will affect roughly 20% of Meta’s workforce when layoffs and transfers are combined.
The memo, sent by Chief People Officer Janelle Gale, makes clear that this is not a one-time cut. It is part of a broader restructuring tied to Meta’s AI push. Employees in North America were told to work from home on the layoff day, and notifications were expected to go out in waves. Meta has also already closed about 6,000 open roles as part of the same process.
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Meta plans to lay off 10% of employees on Wednesday and move 7,000 people into new AI-focused work, such as Applied AI Engineering and Agent Transformation Accelerator. The memo also reveals many leaders will announce org changes, with teams reorganized into smaller pods and cohorts designed to move faster and with more ownership.
The company’s headcount was 77,986 at the end of March, according to company filings cited by Reuters, which gives the restructuring real scale. If the reported numbers hold, this is one of Meta’s biggest internal resets since its earlier efficiency drive.
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Why Meta is doing this now
The memo does not frame the move as a normal cost-cutting exercise. The changes are part of a broader overhaul as Meta increases AI investment and tries to center AI agents in both its products and its internal workflow. That lines up with Meta’s earlier public comments about heavy spending on AI infrastructure. Media reported that Meta has been planning capital expenditure in the range of roughly $115 billion to $135 billion for 2026, with much of it tied to AI.
Meta wants fewer layers between decision-makers and execution. The memo’s language about flatter structures, smaller pods and fewer managers suggests the company is trying to reduce internal friction while pushing more work toward AI-assisted teams. In that sense, the layoffs are not just about headcount; they are about how the company wants work to be organized.
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What it means
Meta’s restructuring plan shows that AI is now shaping staffing, reporting lines and the company’s operating model. The shift toward smaller teams and fewer managers suggests Meta believes speed matters more than scale inside many functions.
The memo signals a harder, more selective internal environment. Some roles are being removed, some are being redirected, and some teams are being rebuilt around AI work instead of older workflows. That creates uncertainty in the short term, but it also shows where the company sees future demand.
