The largest layoff in Meta's history is counting down by the hour: at 4 a.m., notices for 8,000 positions will be issued in three waves worldwide; meanwhile, over 7,000 employees are being reassigned to a brand new AI department, with a significant reduction in management levels. The layoffs may not be over, with AI capital expenditures projected to reach $145 billion by 2026; this organizational transformation under the banner of AI has just begun.

Written by: Xu Chao

Source: Wall Street Journals

The largest personnel restructuring in Meta's history is advancing by the hour. This layoff affecting nearly 8,000 positions is part of a comprehensive organizational transformation centered around AI.

According to internal memos obtained by Business Insider and The Information, Meta's head of human resources, Janelle Gale, informed employees on Monday of the specifics for the layoffs scheduled for this Wednesday (May 20): notifications will be sent out at 4 a.m. (local time) in each region, affecting about 8,000 positions, approximately 10% of Meta's nearly 78,000 total employees.

Alongside the layoffs, a large-scale personnel reassignment is underway—Meta will reallocate over 7,000 employees to various new AI departments while significantly reducing management levels to promote organizational flattening. Simultaneously, internal friction among employees is heating up, with some employees initiating a petition against the company's installation of mouse tracking software, garnering over a thousand signatures, reflecting the tense labor relations under the shadow of layoffs.

Meta has made it clear to employees that the 10% layoff this Wednesday may not be the end, and further reductions in the future are possible. In April, the company projected that its capital expenditures for 2026 would reach between $125 billion and $145 billion, demonstrating its unwavering commitment to AI.

At 4 a.m., three waves of notifications will cover the globe

Gale detailed the execution schedule for this Wednesday in the memo down to the hour: notifications will be sent out at 4 a.m. (local time) in each region, rolled out in three waves across different time zones to cover Meta's global operations.

This means that from the Asia-Pacific region to Europe and then to the Americas, employees will receive notifications in the late night or early dawn hours. One employee told Business Insider that everyone is currently in a "suspended state," waiting to confirm their job fate.

7,000 reassigned to AI, restructuring goes beyond layoffs

This personnel shift is not merely a cost-cutting measure but is accompanied by a large-scale strategic reassignment.

According to The Information, Gale stated in the memo that the productivity enhancements brought by AI enable the company to reassign over 7,000 employees to several new departments, including the Applied AI Engineering (AAI), Agent Transformation Accelerator, Central Analytics, and a newly established enterprise solutions team.

The Information previously reported that Meta has begun pulling top engineers from across the company to bolster the AAI department to enhance its strength in the competitive landscape of AI models. Gale pointed out in the memo that leaders from various departments have incorporated "AI-native design principles" into the new organizational structure, with related adjustment plans to be announced alongside the layoffs.

Significant reduction in management levels, promoting organizational flattening

Gale explicitly stated in the memo that management positions will be reduced across the company, aiming to create a flatter hierarchy.

"We have now reached a stage where many teams can operate under a flatter structure, acting faster and taking on more ownership in smaller pods/cohorts," she wrote.

Some teams at Meta's Reality Labs have previously started restructuring into small pod architectures, a trend that Business Insider had previously reported.

Over a thousand signatures protesting mouse tracking, internal friction surfaces

Amid the shadow of layoffs, another collective backlash from employees is also brewing. Some employees have initiated a petition against the company's installation of mouse tracking software, with over a thousand signatures, reflecting employee strong resistance to management's increased monitoring measures.

Several current employees told Business Insider that overall morale at the company is clearly under pressure.

Further layoffs not ruled out, AI investment continues to ramp up

The layoffs this Wednesday are not the end. Business Insider previously reported that Meta management has informed employees that further reductions may occur after this round of layoff affecting 10% of the workforce.

While undergoing significant downsizing, Meta's capital investment in AI is still accelerating. The company estimated in April that its capital expenditures for 2026 will range between $125 billion and $145 billion, highlighting its massive bets on AI infrastructure—this is also the most direct explanation for the current restructuring driven by AI logic.