Meta began notifying approximately 8,000 employees on Wednesday that their jobs were being eliminated, with notifications starting in Asia and reaching U.S. employees during their morning hours. According to reports from Reuters, the layoffs represent about 10% of Meta's global workforce. The company placed affected workers in a 'non-working notice period,' during which they remain on payroll but are not required to work. The departures and reshuffle combined affect around 20% of Meta's workforce, as the company had around 78,000 employees at the end of March. For the thousands of workers who woke up to find their office badges already deactivated, the immediate question is what they get - and the severance terms are detailed in the full layoff email obtained by Business Insider.
Workers affected so far include those on the company's integrity team - the group in charge of removing malicious content and hate speech - as well as members of the company's cybersecurity teams and content design division, according to reporting from Business Insider. In addition to the cuts, Meta announced it would cancel plans to hire 6,000 people and shift 7,000 other employees into artificial intelligence workflow-related roles. This represents a significant shift in the company's hiring strategy as it focuses resources on AI development.
According to the leaked email obtained by Business Insider, affected US employees will receive 16 weeks of base pay, plus two additional weeks for every year of service completed. The severance package also includes healthcare coverage under COBRA for employees and their families for 18 months, which is three times what Meta previously offered affected workers. For comparison, Amazon gave laid-off staff three months of healthcare coverage, while Block offered six months. Employees outside the US who were impacted by the job cuts will receive similar packages that vary by country. The company's Chief People Officer Janelle Gale announced that departures and reshuffle combined affect around 20% of Meta's workforce.
Despite the layoffs, Meta plans to move more than 7,000 employees into new AI-focused roles as the company aggressively ramps up spending on artificial intelligence infrastructure. As reported by Reuters, the company's projected capital expenditure for AI investments this year is between ₹11,250 crore and ₹14,500 crore. Gale wrote in a memo to Reuters that the company is now at the stage where many orgs can operate with a flatter structure with smaller teams of pods/cohorts that can move faster and with more ownership. The changes are part of an overhaul as Meta increases its investments in artificial intelligence in a bid to make AI agents central in both its approach to work internally and its product offerings.
Employees must actively sign a Separation Agreement to unlock their severance payout, with a signable version sent to their personal email on the same day as the termination notice. Crucially, if an employee finds and accepts a new role within Meta itself no later than one week before their termination date, the agreement becomes void and they receive no severance. Meta is offering three months of complimentary external job search assistance through outplacement firm Lee Hecht Harrison to help employees land new roles. Additionally, Meta has directed visa holders to a dedicated Alumni Portal with general immigration guidance and contact information for an assigned law firm, according to the email obtained by Business Insider.
