Meta plans sweeping layoffs as AI costs rise: Report
Synopsis
Meta is planning sweeping layoffs that could impact 20% or more of employees as the company seeks to offset rising AI infrastructure costs, Reuters reported.
Meta Platforms is considering sweeping layoffs that could affect 20% or more of its workforce as the company grapples with rising artificial intelligence infrastructure costs and pushes for greater efficiency through AI-assisted work, Reuters reported, citing sources familiar with the matter.
Key highlights
- Meta considering layoffs that could affect 20%+ of workforce
- Cuts linked to rising AI infrastructure spending and efficiency push
- Company employed about 79,000 people as of end-2025
- Meta investing heavily in generative AI, data centers and talent
- Plan would mark largest restructuring since 2022-23 layoffs
Layoffs could affect large portion of workforce
The potential job cuts could impact 20% or more of Meta’s workforce, according to three sources cited by Reuters.
No timeline has been finalised for the layoffs and the final scale of the cuts remains under discussion, the sources said.
Senior executives have recently informed other company leaders about the possible restructuring and asked them to begin planning workforce reductions.
The sources spoke on condition of anonymity because they were not authorised to discuss internal plans.
Meta declined to confirm the report.
“This is speculative reporting about theoretical approaches,” company spokesperson Andy Stone said in response to questions.
Potential cuts would be largest since 2023 restructuring
If implemented, the layoffs would represent the largest workforce reduction at Meta since its restructuring in 2022 and 2023, which the company described as its “year of efficiency.”
Meta employed nearly 79,000 workers as of December 31, according to its most recent regulatory filing.
During the earlier restructuring, the company laid off about 11,000 employees in November 2022, roughly 13% of its workforce at the time.
Around four months later, Meta announced another round of 10,000 job cuts as part of its broader cost-cutting effort.
Zuckerberg doubling down on AI investments
The potential layoffs come as CEO Mark Zuckerberg accelerates Meta’s push into generative artificial intelligence.
Over the past year, the company has offered large compensation packages worth hundreds of millions of dollars over four years to recruit top AI researchers for a new superintelligence team.
Meta has also outlined major infrastructure spending plans.
The company said it intends to invest about $600 billion in building data centers by 2028 to support its expanding AI capabilities.
Earlier this week, Meta also acquired Moltbook, a social networking platform designed for AI agents.
Additionally, the company is spending at least $2 billion to acquire Chinese AI startup Manus, Reuters previously reported.
AI expected to reshape workforce needs
Zuckerberg has suggested that improvements in AI systems could significantly change how work is done within the company.
Speaking earlier this year, he said some projects that once required large teams can now be completed by a single highly skilled employee using advanced AI tools.
These efficiency gains are expected to reduce the need for certain roles as AI capabilities expand.
Broader tech industry trend
Meta’s potential restructuring reflects a broader shift across the technology sector as companies integrate artificial intelligence into operations.
Several large technology firms have already announced job cuts this year while increasing spending on AI development.
Amazon said in January it would eliminate around 16,000 jobs, representing nearly 10% of its workforce.
Fintech firm Block also cut nearly half of its staff recently, with CEO Jack Dorsey citing the growing capabilities of AI tools that allow companies to operate with smaller teams.
AI development challenges
Meta’s aggressive push into AI follows challenges with its Llama 4 models last year.
The company faced criticism after early versions of the model produced misleading benchmark results.
Meta later abandoned plans to release the largest version of the model, known as Behemoth, which had been scheduled for launch in the summer.
The company’s superintelligence team is now working on a new AI model called Avocado, though early performance has reportedly fallen short of expectations.
What happens next
Meta has not finalised the scale or timing of potential layoffs, according to Reuters.
However, analysts expect technology companies to continue balancing rising AI investment costs with workforce restructuring as artificial intelligence becomes a central focus of the industry.
FAQs
Q1: Why is Meta planning layoffs?
According to Reuters, Meta is considering layoffs to offset rising AI infrastructure costs and improve efficiency through AI-assisted work.
Q2: How many employees could be affected?
The cuts could impact 20% or more of Meta’s workforce, though the final number has not been confirmed.
Q3: How big is Meta’s workforce?
Meta had about 79,000 employees as of December 31, according to its latest regulatory filing.
Q4: How much is Meta investing in AI?
The company plans to invest around $600 billion in data centers by 2028 and is spending billions to acquire AI startups and recruit top researchers.
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I write about markets, money, and the macro forces that move them. Passionate about turning complex economic trends into sharp, easy-to-understand stories. Off the clock, it’s hip hop, rock, reggae -- and a mix of cricket and basketball.
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