Meta and LinkedIn have announced fresh layoffs as Silicon Valley companies redirect billions toward AI infrastructure, automation and long-term technology investments.
Meta and LinkedIn have announced fresh layoffs as major technology firms continue restructuring around artificial intelligence investments.
The scramble to stay ahead in the artificial intelligence race is beginning to change the shape of Silicon Valley’s workforce, with Meta and LinkedIn announcing fresh job cuts even as they pour billions into AI tools and infrastructure.
The latest round of restructuring highlights how major technology firms are increasingly redirecting money and manpower toward AI development, while trimming teams and slowing hiring in other areas. The moves come despite strong revenues at several companies and growing investor pressure over the massive costs attached to the AI push.
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According to NBC News, Meta is preparing a large-scale internal restructuring that could impact nearly 10 per cent of its workforce. The company plans to shift around 7,000 employees into newly created AI-focused divisions while laying off about 8,000 workers.
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At the same time, Meta is expected to leave nearly 6,000 positions vacant as part of efforts to streamline operations and cut costs.
In an internal memo circulated earlier this year, Meta’s head of people, Janelle Gale, said the restructuring was aimed at making the company “more efficient” while supporting investments in newer technologies.
“We’re doing this as part of our continued effort to run the company more efficiently and to allow us to offset the other investments we’re making,” Gale wrote.
“This is not an easy tradeoff and it will mean letting go of people who have made meaningful contributions to Meta during their time here,” she added.
Employees affected by the restructuring are expected to receive official communication through email.
Meta has been aggressively expanding its AI ambitions across platforms, including Facebook, Instagram and WhatsApp. During the company’s first-quarter 2026 earnings call, Chief Financial Officer Susan Li said AI tools were increasingly being used to improve engineering productivity and internal efficiency.
The company has also sharply increased its projected capital expenditure for 2026. Meta now expects spending to be between USD 125 billion and USD 145 billion, up from its earlier estimate of USD 115 billion to USD 135 billion. The revised forecast includes higher data centre costs and rising component prices linked to AI expansion.
However, the spending spree has also triggered concerns on Wall Street.
Meta’s shares have fallen nearly 9 per cent this year and slipped further after its April earnings announcement. Analysts at JPMorgan Chase reportedly downgraded the stock, warning that the company faces a tougher road to generating returns from its AI investments compared to rivals.
Bank of America analysts also questioned whether the current pace of AI spending would remain sustainable over the long term.
Meta had 77,986 employees at the end of March 2026, down from 86,482 workers in 2022.
LinkedIn has also announced a fresh round of layoffs, according to a report by The New York Post.
Citing a WARN filing, the report said 606 employees had been informed about permanent job cuts that will come into effect from July 13.
The biggest impact was reported at LinkedIn’s Mountain View office in California, where 352 employees were affected, along with 66 remote workers linked to the same location.
The company also cut 108 jobs in San Francisco, 59 in Sunnyvale and 21 in Carpinteria.
In an internal memo, LinkedIn CEO Daniel Shapero reportedly told employees that the company needed to “reinvent how we work” while redirecting investments toward infrastructure and long-term priorities.
The layoffs span several departments, including engineering, product and marketing.
LinkedIn is also reducing spending on vendor contracts, office space, customer events and marketing campaigns.
The cuts come even after LinkedIn posted 12 per cent year-on-year revenue growth in its third-quarter earnings.
Its parent company, Microsoft, has separately announced buyout offers that could impact nearly 8,750 employees, or roughly 7 per cent of its global workforce of 125,000 people. The programme targets workers eligible for early retirement based on age and years of service.
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