Mark Zuckerberg lays off 8,000 employees, spends $130B on AI
Meta CEO Mark Zuckerberg says AI has “net created a lot of jobs” thanks to the massive infrastructure buildout, dismissing fears of AI job losses. His remarks come months after Meta laid off 8,000 employees—10% of its workforce—in an AI-first restructuring, while committing $130-145 billion to AI spending in 2026. Meta’s Q2 free cash flow crashed 91% as shares fell 10%, even as revenue jumped 28%…
Meta CEO Mark Zuckerberg defended the company's AI-first restructuring during his appearance with the Wall Street Journal before Meta's June quarter earnings. Zuckerberg argued that the technology is actually hiring because of the infrastructure that needs to be built, but the company spent 2024 laying off 8,000 employees - equivalent to 10% of its workforce - and reassigned another 7,000 to AI initiatives.
Zuckerberg's claim of job creation is based on the physical buildout of data centers, with Meta operating or constructing 32 data centers worldwide and planning to double its computing power this year. However, the jobs associated with this infrastructure are on construction sites and in related fields, not inside Meta. The financial impact of the AI transition is evident in Meta's second-quarter free cash flow, which dropped 91% to $784 million in May, and a 10% drop in shares despite a 28% increase in revenue.
Investors are questioning the value of Meta's AI spending, while Zuckerberg maintains that the company will be rewarded for its investment in AI.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
