Zuckerberg Ties Meta's 8,000 Layoffs to Surging AI Capex, Warns of More Cuts

Meta CEO Mark Zuckerberg confirmed on May 2 that ~8,000 layoffs (10% of ~79,000 workforce) starting May 20, plus 6,000 unfilled roles, stem from soaring 2026 AI capex now at $125-145B, while signaling possible further reductions amid 'AI native' reorganization and employee backlash over tracking tools. Rumors of 20% cuts surfaced March 15, escalating to the April 23 announcement of efficiency-driven reductions to fund AI infrastructure, initially dropping shares 2.3% to $659 before a 3% rebound on Wedbush praise. Q1 earnings beat estimates but capex hike triggered a 9% plunge on April 30, highlighting investor tension over AI spend versus cost discipline.