Meta laid off 8,000 employees in May 2026—about 10% of its 80,000-person workforce—then shifted 7,000 workers into AI-focused roles in July as CEO Mark Zuckerberg admitted the effort “hasn’t really accelerated in the way we expected.” The company is cutting another 1,400 positions across Washington state starting July 22. The restructuring targets integrity, cybersecurity, and Reality Labs teams while protecting AI infrastructure and monetization. Meta flattened organizational structure and eliminated management layers. Meta spent billions on AI infrastructure, but internal tools and agents developed slower than leadership anticipated. Zuckerberg’s candor signaled frustration; Meta expected breakthrough moments but got incremental gains. Employee morale cratered, with Blind ratings dropping 25% in recent weeks and median compensation falling nearly $30,000 year-over-year. Workers fear they’re training AI to replace themselves. Turnover accelerated as talent left for OpenAI, Anthropic, and Google. Meta’s AI-first strategy continues despite setbacks.