Meta is reportedly preparing for a major round of layoffs that could affect as much as 20 per cent of its global workforce, as the technology giant seeks to offset the soaring cost of artificial intelligence investment while reshaping its operations around AI-driven productivity.
According to sources familiar with the discussions, senior executives at the company have begun signalling to leadership teams that job cuts are likely, although the scale and timing of the reductions have not yet been finalised. If the reductions were to reach the 20 per cent level currently under discussion, it would represent the largest workforce reduction since the company’s sweeping restructuring in 2022 and 2023.
A spokesperson for Meta Platforms declined to confirm the plans, describing reports of potential layoffs as “speculative reporting about theoretical approaches”. However, people close to the company say internal conversations about streamlining teams have intensified in recent weeks.
Meta employed nearly 79,000 people globally as of the end of last year. A reduction of 20 per cent would potentially affect more than 15,000 roles.
The potential cuts follow a period of heavy spending on artificial intelligence infrastructure and talent as chief executive Mark Zuckerberg pushes to position the company as a leader in generative AI and so-called “superintelligence”.
Meta has already committed to investing hundreds of billions of dollars into new AI data centres and computing capacity over the next several years. The company has signalled that it plans to spend as much as $600 billion building new data centre infrastructure by 2028 as it scales its AI capabilities.
At the same time, Meta has been offering enormous compensation packages to attract top AI researchers to its new superintelligence research group. Some packages are reportedly worth hundreds of millions of dollars over four years in an effort to compete with rivals in the rapidly escalating global race for AI talent.
The company has also expanded through acquisitions to strengthen its position in the AI sector. Earlier this week Meta confirmed the acquisition of Moltbook, a social networking platform designed specifically for AI agents, while reports suggest the company is spending at least $2 billion to acquire Chinese AI startup Manus.
However, Meta’s AI development push has not been without setbacks. Its latest large language models have faced criticism from developers and researchers, particularly following concerns that benchmark results for earlier versions of the company’s Llama models overstated performance.
Meta ultimately abandoned plans to release the largest version of its Llama 4 model, known internally as Behemoth, after the system failed to meet expectations during testing.
The company’s next flagship AI system, currently being developed under the codename Avocado, is intended to restore Meta’s standing in the increasingly competitive generative AI market, though insiders say progress has been slower than hoped.
Behind the restructuring discussions lies a broader shift in how major technology companies believe AI will transform their workforce.
Zuckerberg has repeatedly suggested that improvements in AI tools will allow companies to achieve the same output with far fewer employees. Earlier this year he said that projects which previously required large teams could now be delivered by a single highly skilled engineer supported by advanced AI systems.
This shift toward “AI-assisted workers” is increasingly reshaping hiring strategies across the technology industry.
Large US technology companies have already begun cutting jobs while simultaneously ramping up spending on AI infrastructure and automation tools. Amazon confirmed earlier this year that it would cut about 16,000 corporate jobs, while payments firm Block recently announced plans to eliminate nearly half its workforce, citing productivity gains from AI.
Workforce experts say the trend reflects a wider recalibration across the tech sector following the rapid hiring surge during the pandemic.
Thea Fineren, chief people officer at IT services company Advania, said the restructuring being considered at Meta reflects a broader shift across the corporate world as AI begins to automate large portions of routine work.
She said companies that expanded aggressively during the pandemic are now reassessing workforce structures in light of rapidly advancing automation technologies.
“Even the world’s most advanced companies are not immune to the accelerating impact of automation and overhiring in the AI era,” she said. “Organisations scaled rapidly during the pandemic and are now confronting the realities of that growth alongside major technological change.”
Fineren said HR leaders must increasingly plan for continuous workforce transformation rather than reacting after technological disruption has already occurred.
Businesses should identify roles most vulnerable to automation while investing in reskilling programmes and new career pathways, she said, adding that companies must maintain a human-centred approach even as AI becomes more deeply embedded in operations.
As artificial intelligence systems take over transactional and repetitive tasks, she argued, employees will increasingly focus on higher-value work that requires judgement, creativity and human interaction.
“It’s not humans versus machines,” she said. “It’s about giving people the best opportunity to add value in areas where human capability still matters most.”
For Meta, however, the coming months could mark another pivotal chapter in its attempt to transform itself from a social media company into one of the world’s leading AI platforms, even if that transformation comes with significant job losses along the way.
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Meta preparing major layoffs as AI spending accelerates