Meta Platforms may be preparing for its largest round of layoffs since 2023 as the company accelerates investment in artificial intelligence and looks to restructure its workforce.
According to sources cited by Reuters, Meta is considering job cuts that could affect 20% or more of its employees. The move is reportedly being discussed as the company faces rapidly rising costs tied to AI infrastructure and seeks to improve operational efficiency.
The sources said no final decision has been made regarding the size or timing of the layoffs. However, senior executives have reportedly asked managers across the organisation to identify areas where headcount could potentially be reduced.
Meta declined to comment on the reports.
If implemented, the cuts would exceed the company’s previous restructuring measures during its “year of efficiency” initiative in 2022 and 2023.
Potential layoffs could surpass previous cuts
Meta employed nearly 79,000 people as of December 31, according to its latest regulatory filing.
In November 2022, the company cut about 11,000 jobs, roughly 13% of its workforce at the time. A second round of layoffs followed in March 2023, affecting another 10,000 employees.
A reduction affecting roughly one-fifth of the workforce would therefore surpass those earlier cuts and mark one of the largest restructurings in Meta’s history.
The potential layoffs come as the company attempts to balance massive AI investment with tighter cost controls.
Zuckerberg pushes aggressive AI expansion
Chief executive Mark Zuckerberg has spent the past year pushing Meta to compete more aggressively in the generative AI race against companies such as OpenAI, Google, and Microsoft.
To strengthen its capabilities, Meta has reportedly offered large compensation packages to top AI researchers, with some deals valued in the hundreds of millions of dollars over several years.
The company has also outlined plans to invest hundreds of billions of dollars in AI data-centre infrastructure by 2028 to support large-scale model training and computing needs.
Earlier this week, Meta acquired Moltbook, a social networking platform designed for AI agents. Reuters previously reported that the company was also planning to spend at least $2 billion to acquire Chinese AI startup Manus.
Zuckerberg has previously suggested that AI could dramatically increase productivity, allowing projects that once required large teams to be completed by much smaller groups using advanced AI tools.
Part of a broader tech industry shift
Meta’s potential layoffs reflect a broader trend across the technology sector as companies rethink workforce needs in the age of artificial intelligence.
Several major technology firms have already announced job cuts while increasing spending on AI development.
Earlier this year, Amazon confirmed layoffs affecting around 16,000 employees as part of cost-cutting measures.
Fintech company Block also reduced its workforce significantly, with CEO Jack Dorsey stating that advances in AI tools allow companies to operate with smaller teams.
Industry analysts say the rapid development of AI systems is likely to reshape workforce structures across technology companies, particularly in areas where automation can streamline technical and operational roles.
Meta’s AI strategy faces challenges
Meta’s AI push has also faced criticism and setbacks.
Last year, the company faced scrutiny over the performance of its Llama 4 models, including questions about benchmark results used to promote early versions.
Meta later cancelled plans to release the largest model in the series, known internally as Behemoth, which had been expected to launch in the summer.
To regain momentum, the company’s newly formed superintelligence team is now working on a next-generation AI system internally referred to as “Avocado.” However, according to sources cited by Reuters, the project has yet to meet internal performance expectations.
A turning point for Meta’s workforce
The potential layoffs highlight how rapidly the technology industry is changing as AI becomes central to corporate strategy.
For Meta, the challenge will be balancing massive infrastructure spending, aggressive AI development, and workforce restructuring while maintaining the strength of its core businesses in social media and digital advertising.
If the proposed cuts move forward, they would represent another major shift in the tech sector’s transition toward AI-driven productivity and leaner organisational structures.
For workers across the industry, the trend signals that artificial intelligence is not only reshaping products and services—but also the size and structure of corporate workforces.
Source: Reuters