Meta Weighs Layoffs Affecting Around 20% of Employees as AI Investment Grows

Meta Platforms is considering a large round of layoffs that could affect 20% or more of its workforce, according to a report by Reuters. The discussions remain preliminary, and the final scale of the cuts has not been determined. 

No timeline has been set for the potential layoffs. Reports suggest that senior executives have informed some leaders to begin evaluating areas where headcount reductions may be possible. 

Company Response 

Meta has not confirmed the reported plans. Responding to questions, company spokesperson Andy Stone said the reports were speculative. “This is speculative reporting about theoretical approaches,” Stone said. 

The company has not disclosed whether any formal restructuring process is underway. 

Workforce Size and Possible Impact 

Meta employed around 79,000 people as of December 31, according to its latest regulatory filing. If a reduction of about 20% is implemented, the number of affected employees could reach roughly 16,000. 

Such a move would represent the largest workforce reduction at the company since its restructuring during late 2022 and early 2023, a period that chief executive Mark Zuckerberg referred to internally as the “year of efficiency”. 

During that phase, Meta announced 11,000 job cuts in November 2022, representing about 13% of its workforce at the time. The company later announced another 10,000 layoffs in early 2023. 

Increasing Investment in Artificial Intelligence 

The reported discussions come as Meta continues to increase spending on artificial intelligence development and infrastructure. 

The company has said it plans to invest around $600 billion in data centre capacity by 2028 as demand for computing power for AI systems rises. 

Meta has also offered large compensation packages, some reportedly worth hundreds of millions of dollars over 4 years, to recruit researchers for its superintelligence-focused AI teams. 

AI Projects and Recent Setbacks 

Meta has expanded its AI activity through acquisitions and new projects. The company recently acquired Moltbook, a social networking platform built for AI agents, and is also spending at least $2 billion to acquire the Chinese AI start-up Manus. 

The push into generative AI follows challenges with earlier versions of Meta’s Llama 4 models. The company cancelled the release of its largest planned version, known as Behemoth, which had been scheduled for release last year. 

Read More: Accenture Announces New Leadership Structure For Reinvention Services Division! 

Conclusion 

The potential layoffs remain under discussion and have not been finalised. However, the internal planning shows the growing financial and operational focus on artificial intelligence infrastructure and development across large technology companies. 

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