Meta reassigns 7,000 employees in expanding AI restructuring drive
Meta is expanding its AI restructuring strategy by moving thousands of employees into artificial intelligence-related roles while preparing additional workforce cuts. The company increased infrastructure spending guidance to as much as $145 billion for 2026.
Key Highlights
- Meta reassigned around 7,000 employees into AI-focused teams before planned workforce restructuring.
- Company raised 2026 AI infrastructure spending forecast to between $125 billion and $145 billion.
- Meta workforce stood at nearly 78,000 employees as of March 2026 filings.
- Global technology companies continue increasing AI spending while restructuring non-AI business divisions.
Meta is continuing to accelerate its artificial intelligence restructuring plan, shifting thousands of workers away from their current positions and slated for further job reductions in various business segments, according to internal documents seen by Reuters, Bloomberg and The New York Times.
With the swift progress of generative AI products over the last two years, the latest restructuring follows as major technology firms invest more in AI infrastructure, data centers and automation systems.
Meta reallocated about 7,000 staffers to AI-related roles related to recommendation systems and advertising tools, large language models and computing infrastructure, said.
The layoffs and the restructuring of management were planned to start from May 20, as internal company notices revealed, Reuters reported.
Meta had 77,986 jobs as of March 31, 2026, according to the latest filings. It's also the second round of efficiency-driven restructuring undertaken by the company, in which they reduced employment by over 20,000 since the end of 2022.
The focus shifts to AI spending
Meta has raised its capital expenditure guidance for 2026 to between $125 billion and $145 billion, from its previous range of $114 billion to $119 billion. That spike is primarily attributable to investments in AI infrastructure, such as data centers and computing equipment, the company said.
The amount is a bump to Meta's total investment in AI infrastructure, which includes other more significant spending by corporate entities this year. Competition for generative AI services is growing, with Microsoft, Alphabet and Amazon announcing multi-billion dollar plans to boost their AI infrastructure.
Cloud computing and demand for AI software and enterprise automation is pushing research firm IDC to believe that global spending on AI may reach more than $630 billion by 2028.
Priorities change as the tech industry changes
The restructure is part of a broader trend in tech hiring. Companies have been cutting back in their business operations, but hiring has been active in the AI engineering, chip development, data infrastructure space.
The updates also come after the industry's recent worries about the high infrastructure expenses associated with AI systems. In 2026, technology firms and investors have turned to the semiconductor industry as a primary focus area, alongside the consumption of power and the growth of data centers.
In its recent earnings call, Meta posted first-quarter revenue of $56.3 billion and net income of $26.8 billion, with the significant boost coming from advertising revenue and AI-based recommendation systems.
Internal Pushback Emerges
In reports, some employees expressed concerns regarding role transfers, about the reduction in management levels and restructuring timelines, which were discussed internally.
Meta has not revealed the number of employees it anticipates will be impacted in the continued reorganisation.
FAQs
Q1. Why is Meta restructuring employees around AI?
Meta is shifting resources toward artificial intelligence products, infrastructure and computing systems as AI spending increases across the technology sector.
Q2. How many employees were moved into AI roles at Meta?
Reports said roughly 7,000 employees were reassigned into AI-focused positions across engineering, product and operations teams.
Q3. How much is Meta spending on AI infrastructure in 2026?
Meta raised its 2026 capital expenditure forecast to between $125 billion and $145 billion, mainly for AI infrastructure expansion.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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