This article first appeared on GuruFocus.
Meta Platforms (META, Financials) is preparing to begin another round of layoffs this week as the company accelerates spending on artificial intelligence infrastructure and products.
The company is expected to reduce its workforce by about 10%, or roughly 8,000 jobs, while also canceling plans to fill 6,000 open roles. Additional layoffs could follow later this year, according to people familiar with the matter.
The cuts come as Meta sharply increases investment in AI. Last month, the company raised its 2026 capital expenditure forecast by as much as $10 billion, bringing projected spending to as high as $145 billion.
Meta executives said the reductions are part of efforts to operate more efficiently while redirecting resources toward AI-related initiatives. The company has also expanded internal AI projects, including tools designed to collect employee workplace activity data for model training.
The broader technology sector continues to face pressure to balance hiring, profitability and AI investment. Nearly 110,000 layoffs have been announced across 137 tech companies this year, according to Layoffs.fyi.
Investors will watch whether Meta’s growing AI spending improves long-term growth while preserving margins and employee stability.