Meta may cut Up to 20% workforce as AI spending surges

Meta Platforms is considering sweeping job cuts that could affect up to 20% of its workforce as the company ramps up massive investments in artificial intelligence infrastructure and talent, according to people familiar with the matter.

The potential layoffs, first reported by Reuters, have not yet been finalized and no timeline has been set. However, senior executives have recently signaled the possibility of reductions to other leaders within the company and asked them to begin planning workforce cuts.

Responding to queries, Meta spokesperson Andy Stone described the reports as “speculative reporting about theoretical approaches.”

If implemented at the 20% level, the move would mark Meta’s largest workforce reduction since its sweeping restructuring in 2022–23 — a period CEO Mark Zuckerberg famously dubbed the “year of efficiency.” The company employed nearly 79,000 people as of December 31, according to its latest regulatory filing.

Earlier rounds of layoffs

Meta previously cut about 11,000 jobs in November 2022 — roughly 13% of its workforce at the time. Four months later, it announced another round of layoffs affecting around 10,000 employees as part of broader cost-cutting efforts.

The possible new cuts signal how aggressively the company is now reallocating resources toward artificial intelligence.

Zuckerberg’s AI push

Over the past year, Zuckerberg has pushed the company to compete more aggressively in generative AI. Meta has reportedly offered lucrative compensation packages — in some cases worth hundreds of millions of dollars over four years — to recruit leading AI researchers for a new “superintelligence” team.

The company has also outlined plans to invest about $600 billion in building data centres by 2028 to support its AI ambitions.

Earlier this week, Meta acquired Moltbook, a social networking platform designed for AI agents, and is reportedly spending at least $2 billion to buy Chinese AI startup Manus, according to Reuters.

Zuckerberg has hinted that such investments could significantly improve productivity. In January, he said he was already seeing “projects that used to require big teams now be accomplished by a single very talented person.”

Part of a wider tech trend

Meta’s possible workforce cuts mirror a broader shift across major technology companies as advances in AI reshape how businesses operate.

Earlier this year, Amazon confirmed plans to cut around 16,000 jobs — nearly 10% of its workforce. Meanwhile, fintech firm Block Inc. slashed nearly half its staff, with CEO Jack Dorsey openly citing the growing capabilities of AI tools in enabling companies to do more with smaller teams.

AI ambitions face technical hurdles

Despite its aggressive investments, Meta’s AI push has not been without challenges. The company faced criticism last year over its Llama 4 models after researchers flagged misleading benchmark results in early versions.

Meta eventually scrapped the planned release of its largest model, Behemoth, which had been expected last summer.

The company’s superintelligence team is now working on a new model called Avocado in an effort to regain momentum, though sources say its performance so far has also fallen short of expectations.

Together, the developments underscore the high-stakes race in artificial intelligence — where companies are simultaneously investing billions while reshaping their workforces to adapt to an AI-driven future.