Meta Reports Historic Profit but Plans to Cut 8,000 Jobs While Boosting AI Talent Investment

May 16, Kathmandu – Meta, the parent company of Facebook, announced unprecedented profits for the first quarter of 2026 but simultaneously revealed plans to cut approximately 8,000 employees. This decision has sparked significant dissatisfaction and disappointment within the company. Despite reporting total revenue of $56.31 billion and a net profit of $26.8 billion in Q1, the large-scale layoffs have sent shockwaves through Silicon Valley. A detailed report by Wired, based on conversations with dozens of current and former employees, describes the atmosphere inside Meta as highly tense and demoralizing.

Following the announcement of the layoffs, CEO Mark Zuckerberg addressed employees directly in a company-wide town hall meeting held on April 30. However, rather than alleviating concerns, the meeting seemingly exacerbated employee anxieties. Zuckerberg clarified that the job cuts were not due to the adoption of artificial intelligence tools but remained silent on the primary reasons behind the layoffs. Meanwhile, CFO Susan Li disclosed plans for workforce reductions to take place during May.

According to Li, a shift to a linear operating model will help the company accelerate progress and maintain balance among its upcoming major investments. In reality, the company’s intent to invest between $125 billion and $145 billion in AI technology appears to be driving the need to reduce costs by laying off 8,000 staff members. Meta had already implemented a 5 percent cut in annual salary increases in February 2026, continuing the sequence following last year’s 10 percent reduction. Data shows that Meta employees’ average annual compensation fell from $417,400 in 2024 to $388,200 in 2025.

In contrast, Zuckerberg is personally offering high-value compensation packages reaching millions of dollars to attract top AI researchers. Under the leadership of former Scale AI head Alexander Wang, Meta’s “Super Intelligence Labs,” launched last year, has recruited several AI specialists with attractive salaries of up to $100 million. This move has safeguarded senior executives and a select group of AI experts, while employees in other departments face the threat of job cuts. The growing economic disparity between these groups has triggered deep discontent among staff. An Instagram employee told Wired, “Right now, no one is happy at the company except for the top executives.”