Meta plans 10% layoffs amid record profits and record low morale
Tags AI · Enterprise · Layoffs
Meta is preparing to cut approximately 10% of its workforce in the week of May 18, even as the company reports record-high profits driven by its AI investments and advertising business. WIRED reported on May 14 that more than a dozen current and former employees described an internal culture where 'everyone is unhappy,' citing burnout, surveillance, and a sense that the company is prioritizing AI metrics over employee wellbeing. The layoffs come as Meta aggressively pivots resources toward AI development, including its Llama model family and AI-powered advertising tools.
Technical significance
Meta's simultaneous record profits and mass layoffs illustrate the AI-driven restructuring happening across Big Tech. Companies are reallocating headcount from legacy businesses to AI development, creating a two-tier workforce dynamic. The morale crisis at Meta — one of the most profitable companies in history — signals that AI transformation is creating significant organizational friction, which could affect retention of top engineering talent.