Meta Made $56B in Q1 and Is Still Firing 8,000 People to Pay for AI

Key Takeaways

• Meta posted record $56B revenue in Q1 2026, up 33%, yet is cutting 8,000 jobs starting May 20 to fund a $145B AI infrastructure budget
• Median employee pay already fell from $417K to $388K, while Zuckerberg pays AI researchers up to $100M as one or two replace dozens
• More rounds are planned for August and the fall, as Microsoft’s AI CEO says AI will replace all white-collar work within 12 to 18 months

Meta stock has held up relatively well this year, but inside the company, another round of cuts is beginning. Meta reported $56.3 billion in revenue for the first quarter of 2026. It is the strongest growth pace since 2021. Net income jumped 61%, and advertising demand stayed strong. Amidst this, Wall Street largely welcomed the results. Days later, the company confirmed plans to cut around 8,000 jobs starting May 20. It went on to cancel thousands of open roles. The contrast between record profits and fresh layoffs has become difficult for employees to ignore.

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Why Meta Is Cutting 10% of Its Staff Despite Its Best Quarter Since 2021

Meta is increasing its spending almost everywhere tied to artificial intelligence. The company recently raised its 2026 capital expenditure forecast to between $125 billion and $145 billion. This is mostly for AI infrastructure, servers, chips, and data centers.
 Cisco CEO Chuck Robbins wrote,

“The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest.”

At the same time, Meta layoffs in 2026 are expanding across multiple divisions. According to reports, roughly 8,000 positions are being eliminated this month. More cuts are potentially planned later this year. Another 6,000 open jobs were also removed internally as the company restructures teams around AI-focused projects.

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AI Hiring Is Growing While Other Teams Shrink

The company is still hiring aggressively in some areas, particularly AI research. Previous reports noted that Meta offered compensation packages worth tens of millions of dollars to attract top AI talent for its Superintelligence Labs division.

Meanwhile, broader employee compensation has been moving the other way. Internal company figures cited in recent reports showed median employee pay falling from roughly $417,000 in 2024 to about $388,000 in 2025. Employees have also raised concerns about a new internal system called the Model Capability Initiative. This reportedly tracks keystrokes and mouse movements on work devices to help train AI tools.

The internal mood has shifted noticeably over the past year. Employee reviews collected by Blind showed declining ratings around company culture and leadership. More workers are now worried about future cuts and restructuring.

Meta is far from the only tech company reducing headcount while increasing AI spending. Layoffs.fyi estimates that more than 100,000 tech workers have already been affected by AI layoffs in 2026. This is as companies redirect money toward infrastructure and automation projects.

Microsoft AI chief Mustafa Suleyman recently said AI could automate many white-collar tasks within the next 12 to 18 months. This includes work tied to marketing, project management, accounting, and law.

That bigger shift is becoming harder to separate from what is happening at Meta. The company is still growing quickly, and Zuckerberg’s AI investments continue to expand even after years of aggressive spending. But the latest layoffs also show how major tech firms are changing priorities as AI becomes central to future growth plans.

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