Meta may cut around 20% of workforce amid rising costs of AI investments
Meta Platforms, which operates popular media platforms like Facebook, Instagram, and WhatsApp, is considering sweeping job cuts that could affect as much as 20 per cent of its global workforce as it looks to offset the rising cost of its artificial intelligence (AI) ambitions, Reuters reported on Saturday. This would affect around 16,000 employees, based on Meta Platforms’ workforce of about 79,000 as of December 31, according to its latest filing.
The company is evaluating large-scale layoffs as it prepares for a future where AI-driven tools could significantly increase productivity and reduce the need for large teams. The potential cuts have not been finalised and no timeline has been set, the report added.
Senior executives at Meta have recently discussed the possibility of workforce reductions with other leaders inside the company and asked them to start exploring ways to streamline operations.
Responding to the report, Meta spokesperson Andy Stone described the claims as “speculative reporting about theoretical approaches”.
If the company proceeds with reductions at the scale being discussed, the move would represent Meta’s most significant round of layoffs since the restructuring carried out in 2022 and 2023, a period that Chief Executive Officer Mark Zuckerberg had described as the company’s “year of efficiency”.
During the earlier restructuring, the company laid off about 11,000 employees in November 2022, followed by another 10,000 job cuts in early 2023, as it sought to reduce costs and reorganise operations.
Why is Meta considering large-scale layoffs?
The latest discussions come as Meta is sharply increasing its spending on generative AI, which has become a central focus for the company over the past year. The tech giant plans to invest as much as $600 billion in building data centres by 2028, a move aimed at strengthening the computing infrastructure needed to train and operate large AI models.
The company has also been aggressively recruiting top industry talent, with some compensation packages worth hundreds of millions of dollars over four years, as it builds a specialised “superintelligence” team to accelerate AI development.
In addition to hiring AI researchers, Meta has pursued acquisitions and partnerships in the sector. The firm recently acquired Moltbook, a social networking platform designed for AI agents, and is spending at least $2 billion to purchase Chinese AI start-up Manus.
Zuckerberg has suggested that advances in AI could lead to substantial efficiency gains within the organisation. Earlier this year, he said projects that once required large teams were increasingly being completed by a single highly skilled individual using AI tools.
How are tech firms reshaping workforces amid AI expansion?
The developments at Meta reflect a shift across the technology sector, where companies are reorganising their workforces while ramping up investment in AI.
For instance, Amazon confirmed in January that it would cut around 16,000 jobs, while fintech firm Block, led by Jack Dorsey, recently reduced nearly half of its workforce, citing the growing capabilities of AI systems.
Meta’s renewed focus on AI comes after setbacks with earlier versions of its Llama 4 models. The company faced criticism over benchmark results associated with early releases and eventually scrapped the launch of its largest planned version, known as Behemoth. Its AI research team is currently working on a new model called Avocado, though reports suggest its performance is yet to meet expectations.
