Meta and Oracle Cut Thousands of Jobs to Fund AI

Major technology firms are aggressively cutting staff to prioritize artificial intelligence development. Meta Platforms is laying off 168 employees in Washington state by May 8, primarily targeting software engineers and recruiters within its Reality Labs division. These cuts affect offices in Seattle, Bellevue, and Redmond, as well as remote workers, following previous reductions in October and January. The move signals a scaling back of metaverse ambitions to redirect investment toward humanlike AI, with reports suggesting Meta may reduce its global workforce by up to 20 percent by early 2027.

Simultaneously, Oracle is terminating thousands of employees globally as part of a fiscal 2026 restructuring plan expected to cost $2.1 billion. In Washington, Oracle is cutting 491 positions effective June 1, while 539 employees at its Hillcrest Road campus in Kansas City, Missouri, will be laid off between May 26 and June 1. Despite these cuts, Oracle stated its physical campuses in Seattle and Kansas City will remain open.

These strategic shifts occur as Meta faces legal pressure; a New Mexico jury recently imposed a $375 million penalty on the company for harming children's mental health. Meta has announced its intention to appeal the verdict, maintaining its commitment to protecting teens online.