🍭 Meta Cut 8,000 To Buy More GPUs ⚡

Good morning. Big Tech is speedrunning “replace payroll with power cables” and calling it innovation.

Let’s dive in 👇

🍭 What’s Cookin’:

• Meta trades employees for GPUs

• Google backs Anthropic with $40B

• Claude bugs fixes

Meta
✂️ Cuts 8,000 To Feed The Machine

The Bite:

Meta is laying off approximately 8,000 employees (10% of its workforce) and eliminating 6,000 unfilled roles.

The cuts take effect on May 20.

Chief People Officer Janelle Gale said in an internal memo that the layoffs are needed to offset the company's other investments.

Meta expects 2026 capital expenditure to reach $115 billion to $135 billion, nearly double the $72 billion it spent in 2025, with the bulk going to AI infrastructure and the Superintelligence Labs division.

Snacks:

• Meta had ~78,865 employees at the end of 2025; the cut removes ~10% plus 6,000 open roles

• 2026 AI capex target: $115B–$135B, up from $72.2B in 2025

• Amazon cut 16,000 roles earlier this year, citing AI-driven restructuring

• Microsoft offered buyouts to ~7% of its U.S. staff the same week

• Snap cut 1,000 jobs (16% of workforce); CEO said AI writes 65% of new code

• Meta shares are down over 10% from all-time highs; Q1 2026 earnings report due April 29

Why it Bites:

This is clearly a trade.

Meta is converting headcount directly into compute:
8,000 people out, $135 billion in GPUs and data centers in.

And it's not alone in this.

Amazon, Microsoft, Snap, and Block all announced cuts in the same quarter, each pointing at some version of "AI lets us do more with less."

The polite framing is efficiency, but the honest framing is that Big Tech has decided the marginal employee is worth less than the next GPU.

And that is dangerously becoming the default playbook:

Step one: cut staff.
Step two: redirect savings to AI infrastructure.
Step three: tell investors the headcount reduction is the AI strategy.

Sometimes not in this order. Sometimes in a loop.

And when every major employer in tech runs the same play simultaneously, the result isn't simply a labor market correction.

It's a structural shift that nobody voted on and nobody's planning for.

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_{Everything Else}
🧠 You Need to Know

💼 Meta Cuts 8,000 Jobs To Offset AI Spending
→ Meta will lay off 10% of its workforce effective May 20 and close 6,000 open roles, redirecting savings toward up to $135B in 2026 AI infrastructure spending.

🌏 Anthropic Opens Sydney Office, Names ANZ Chief
→ Former Snowflake SVP Theo Hourmouzis will lead the region as Anthropic's fourth APAC office goes live alongside enterprise deals with Canva and Xero.

🔧 Anthropic Traces Claude Code Issues To Three Bugs
→ A postmortem pinned weeks of user-reported quality degradation to a lowered reasoning default, a caching bug that wiped thinking history each turn, and a verbosity prompt that cut coding performance.

💰 Microsoft Offers Buyouts To 7% Of U.S. Staff
→ Microsoft offered voluntary buyouts to roughly 7% of its American employees the same week Meta announced cuts, with eligible staff receiving details by May 7.

💸 Google Commits Up To $40B Investment In Anthropic
→ Alphabet will invest $10B now at a $350B valuation with up to $30B more contingent on performance milestones, plus 5 gigawatts of computing capacity.