Meta is reportedly preparing for major layoffs that could affect around one-fifth of its workforce, according to sources cited by Reuters. The move is linked to the company’s heavy spending on artificial intelligence (AI) infrastructure and its expectation that AI tools will make operations more efficient, reducing the need for large teams. While no timeline or final figure has been set, senior executives have reportedly already begun discussing plans with internal leaders.
If the cuts reach 20 per cent, they would mark Meta’s largest restructuring since 2022–23, when it eliminated about 21,000 jobs in two rounds of layoffs. At the end of 2023, Meta employed nearly 79,000 people, so the new reductions could be even more significant.
The company has been aggressively investing in AI, offering massive pay packages to attract top researchers and committing hundreds of billions of dollars to build new data centres by 2028. It recently acquired Moltbook, a social-networking platform for AI agents, and is spending billions to buy Manus, a Chinese AI startup. Mark Zuckerberg, CEO, Meta, has argued that AI is already delivering efficiency gains, with projects that once required large teams now being handled by smaller groups or even individuals.
Meta’s push comes after setbacks with its Llama 4 models last year, including criticism over misleading benchmark results and the cancellation of its largest planned model, Behemoth. Its new model, Avocado, has also reportedly struggled to meet expectations, but the company is pressing ahead with its superintelligence team to regain ground.
The planned layoffs reflect a wider trend in the tech industry. Amazon cut about 16,000 jobs earlier this year, and fintech firm Block reduced nearly half its staff, both citing AI’s growing ability to replace traditional roles.