Meta loses 20 million daily users even as AI spending surges

User decline linked to geopolitical disruptions and access restrictions, while the company ramps up multibillion-dollar investments in artificial intelligence, trims workforce, and faces mounting legal and cost pressures across its global operations.

Meta has reported a drop of nearly 20 million daily active users across its platforms, including Facebook, Instagram and WhatsApp, even as the company accelerates its investments in artificial intelligence (AI). The decline, disclosed during the latest earnings call, comes at a critical time when the tech giant is seeking increased investor backing to fund its long-term AI strategy.

The company attributed the fall in its “Family Daily Active People” metric primarily to geopolitical developments. Ongoing internet disruptions in Iran have limited user access, while regulatory restrictions in Russia have significantly curtailed usage of WhatsApp, affecting millions of users. These external factors, Meta said, have played a key role in the recent dip.

AI investments rise despite headwinds

Despite the decline in user numbers, Meta is pressing ahead with aggressive spending plans. Chief Executive Officer Mark Zuckerberg has approved a higher capital expenditure outlook for 2026, with total spending now projected between $125 billion and $145 billion—an increase of about $10 billion from earlier estimates.

The increased investment is largely driven by the growing cost of advanced semiconductor chips and the need to expand data centre infrastructure to support AI workloads. Meta is positioning AI as central to its future growth, focusing on enhancing platform capabilities and driving new user experiences.

At the same time, the company is dealing with rising financial and legal pressures. It has warned investors about ongoing lawsuits related to youth safety and alleged product harm, cautioning that adverse outcomes could result in significant financial liabilities. The warning follows recent courtroom setbacks in cases tied to consumer protection concerns.

Workforce cuts and cost rationalisation

To offset rising costs, Meta has initiated a broad cost-cutting exercise, including workforce reductions. The company recently announced plans to lay off around 8,000 employees, while also cancelling recruitment for approximately 6,000 open roles. These measures come despite a total headcount of nearly 78,000 as of March.

The restructuring reflects Meta’s attempt to streamline operations while redirecting resources toward high-priority areas such as AI development. The company is aiming to balance near-term financial discipline with long-term strategic investments.

While user growth has traditionally been a key strength, the latest decline highlights emerging vulnerabilities linked to geopolitical risks and platform access. Even so, Meta remains committed to its AI-driven transformation, betting that sustained innovation will help it navigate current challenges and maintain its competitive edge in the evolving digital landscape.