Metas 10% Layoff Alongside Record AI Capex Reveals the Actual Bet: Fewer Humans, More Compute

The Math Behind Meta's Layoffs: It's Not Cost-Cutting, It's an AI Bet Meta’s recent 10% workforce reduction wasn’t a reaction to a struggling business. On the contrary, revenue grew 19% year-over-year, ad performance is robust, and the stock is near its all-time high. So why cut 7,000 employees? The answer lies in a single, staggering figure: Meta’s 2026 capital expenditure guidance of $75 billion, the vast majority of which is earmarked for AI infrastructure. This isn't a cost-cutting measure.