Meta Platforms. Inc. announced on May 20. 2026, that it will lay off approximately 8,000 employees—10% of its global workforce—as part of a restructuring plan focused on artificial intelligence (AI) development. The layoffs were confirmed the same day that the company also announced it would reassign 7,000 employees to new AI-related roles, according to internal memos and reports from the New York Times and Reuters.

Controversial Employee Tracking and Layoff Timeline

Before the layoffs were announced. Meta had already stirred internal controversy by implementing a new AI training tool called the Model Capability Initiative (MCI), and the tool tracks employees’ keystrokes, mouse movements, and screen activity, according to Reuters, which obtained internal memos. The system captures screenshots at regular intervals and runs in the background on company-issued computers; Employees raised concerns about privacy and transparency, with some expressing frustration over the lack of an option to disable the tracking.

Andrew Bosworth. Meta’s chief technology officer. Stated in an internal message that there is no option to disable the tracking on company laptops, according to Xataka. The announcement of the tool coincided with heightened anxiety among employees who were already uncertain about potential layoffs; Two days later, the company confirmed the 8,000 layoffs, which affected multiple departments, including engineering and product development.

Restructuring and AI-Focused Departments

Alongside the layoffs, Meta’s chief human resources officer, Janelle Gale, announced that 7,000 employees would be reassigned to new departments focused on AI development, according to heise online and Reuters. These departments are designed to create AI tools for productivity and workplace automation, including AI agents capable of performing tasks typically done by humans. The reassignments are part of a broader strategy to shift the company’s focus toward AI-driven innovation.

The restructuring includes the formation of four new organizations dedicated to AI, according to heise online. These teams are expected to work on tools such as productivity-enhancing AI models and analysis tools to measure the efficiency of AI agents. The company also aims to reduce management layers, making the work environment more efficient, according to internal communications.

Layoff notifications were scheduled for May 20, 2026, with affected employees learning their status via email at 4 a.m. local time, according to heise online. Remote employees were instructed to stay home on the day of the announcement.

Stock Price Decline and AI Investments

Meta’s stock price declined following the restructuring announcements. On May 19, 2026, the stock fell to $600.56 at one point during trading and closed at $602.45 by 8:08 p.m., representing a 1.4% drop from its opening price of $608.92, according to finanzen.net. The decline continued the downward trend that began after Meta released its quarterly earnings report, which highlighted significant investments in AI infrastructure and data centers.

Meta is also expanding its AI capabilities beyond internal operations. The company announced on May 25, 2026, the official release of its AI-powered glasses, the Ray-Ban Meta and Oakley Meta, in South Korea, according to meta.com. These devices integrate AI technology with eyewear and are expected to expand the market for AI-driven consumer products. The release follows a global launch and growing interest in AI wearables, with celebrity endorsements further boosting visibility for the product.

In addition, Meta is working through regulatory challenges in the European Union (EU). The company proposed a new policy to provide free access to its WhatsApp messaging service for competing AI chatbots under certain conditions, according to Alphabiz. The initiative aims to comply with EU antitrust regulations while maintaining control over its messaging platform. However, smaller AI companies have criticized the plan, arguing that it does not sufficiently address concerns about competition restrictions.