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- Meta is reportedly considering layoffs that could affect up to 20% of its workforce as part of a potential cost-restructuring effort.
- The move comes amid rising spending on AI infrastructure, acquisitions, and hiring related to artificial intelligence.
- The company’s last major layoffs occurred in 2022 and 2023, when more than 21,000 jobs were cut.
Meta is reportedly considering a major round of layoffs that could affect up to 20% of its workforce, according to a report by Reuters. The potential cuts come as the company increases its spending on artificial intelligence infrastructure and related investments.
The move could help the Facebook parent company offset the growing costs associated with building advanced AI capabilities, including infrastructure expansion, acquisitions, and hiring specialized talent in the field.
According to a recent regulatory filing, Meta employed nearly 79,000 people as of December 31.
A spokesperson for the company responded to the report by stating that it represents “speculative reporting about theoretical approaches,” suggesting that no final decision has been confirmed.
The discussion around potential layoffs comes at a time when many technology companies are restructuring their workforces as AI continues to automate certain tasks. Several companies — including Block — have recently announced significant job cuts, citing efficiency improvements and the growing role of artificial intelligence.
However, some analysts and industry executives argue that AI is sometimes used as a convenient explanation for layoffs. OpenAI CEO Sam Altman has previously suggested that some companies may be engaging in what he described as “AI-washing,” where artificial intelligence is presented as the main reason for workforce reductions that may actually stem from other factors, such as over-hiring during the pandemic.
Meta has already implemented large-scale layoffs in recent years. In November 2022, the company cut approximately 11,000 jobs, followed by another round of about 10,000 layoffs announced in March 2023 as part of a broader restructuring strategy aimed at improving operational efficiency.
