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The Economic Times
The Economic Times
Trending Desk

Meta to lay off 8,000 employees on May 20: What will be the severance package for staff by Mark Zuckerberg's company?

Meta, the parent company of Facebook, is laying off another 8,000 employees, roughly 10 per cent of its global workforce, on May 20. Meta's chief people officer Janelle Galle, stated that the laid off workers will get “generous” severance packages, reported Bloomberg. The severance package in the United States will include 16 weeks of base pay plus two weeks for every year of employment. Plus, the company would also cover health care costs for US employees and their families for 18 months.

For employees based outside the US, the packages “will be similar but vary by country, as will local timelines and processes.” Meta will also provide career support for impacted workers.

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"We will support those who are laid off with a generous severance package which, in the US, will include 16 weeks base pay plus two weeks for every year of employment. We will also cover the cost of COBRA health care coverage for US employees and their families for 18 months. Packages outside the US will be similar but vary by country, as will local timelines and processes. We will also offer career services to support people in finding another role, and immigration support for those who need it. We’ll share more of these details in a follow-up post ahead of May 20," the company said.

Read full memo

The company informed its employees about the layoffs via an internal memo, reported Bloomberg and was sent by Meta’s chief people officer, Janelle Gale. In the message, Janelle stated that the company was working on internal changes that will “result in us laying off around 10 per cent of the company on May 20.”

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Janelle Gale accepted that the company was sharing the tough news to employees since the layoff reports had already made it to the media. She explained, “Normally, we would want to nail down more details before communicating about this broadly, but since this has leaked, I want to share what I can right now.”

In the memo, Janelle acknowledged that Meta needed to reduce roles to save cash for investments elsewhere. She wrote, “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.” While the Meta chief did not explicitly mention the areas of investment, it is likely that the company will continue to double down on AI.

"Over the last few weeks we have been working on some changes to our organization that will result in us laying off around 10% of the company on May 20, and closing about 6,000 open roles. Normally, we would want to nail down more details before communicating about this broadly, but since this has leaked, I want to share what I can right now. I know this is unwelcome news and confirming this puts everyone in an uneasy state, but we feel this is the best path forward, given the circumstances.

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. 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.

For notifications, we will follow the same process we have before: on May 20, anyone who is impacted will receive an email to their work and personal accounts – please make sure your personal email is updated in Workday.

I know this leaves everyone with nearly a month of ambiguity which is incredibly unsettling. We will try to answer your questions here in the comments but as we’re still working through the details we aren’t able to share much more until later in May. Meanwhile, you can find more information on the People Portal which includes our standard FAQs and logistical details for layoffs."

Why Meta is laying off 8000 employees

CEO Mark Zuckerberg said the teams are being streamlined so they aren't bigger than they need to be, according to a report in Times of India.

Speaking during a call on April 29, Mark Zuckerberg said a major shift has been seen emerging across the company and AI is dramatically accelerating product development. According to Zuckerberg, small teams or even individuals using AI tools are now able to build and launch projects within a week that previously needed dozens of engineers and several months of work. He added that Meta aims to become the preferred platform for such AI-powered creators and plans to roll out far more apps and projects than it has in the past.

“We’re streamlining our teams so they aren’t larger than necessary,” Mark Zuckerberg said, describing the move as a deliberate structural strategy rather than a reactionary measure. He added that Meta would continue rewarding employees who make significant contributions while simultaneously launching a much larger number of projects in parallel.

AI not going to replace people

Mark Zuckerberg distanced himself from the growing concerns around AI replacing jobs. “AI isn't going to replace people,” he told the call, arguing that the technology will help individuals become more productive rather than eliminate human roles altogether.

Why Meta is cutting 8,000 jobs

With nearly 8,000 job cuts planned for May 20 and spending expected to reach a record $125–145 billion this year, Mark Zuckerberg told analysts that Meta is reshaping itself around smaller teams powered by AI tools and highly productive employees. He suggested that the layoffs are not only about reducing costs, but also about deciding who fits into the company’s new AI-focused direction.

Meta CFO Susan Li also said the company is still figuring out what its ideal workforce size should be, especially as AI continues to change how much work a single person can accomplish in a short time. The overall message from Meta’s leadership was clear: the company is undergoing a major transformation, and not every role or employee may remain part of its future plans.

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