Meta may cut up to 20% of staff, surpassing earlier 11,000 and 10,000 layoffs

Meta Platforms may be preparing for its largest round of layoffs since 2023 as the social media giant accelerates its investments in artificial intelligence and restructures its workforce.

The company is considering job cuts that could affect 20% or more of its employees, three people familiar with the matter told Reuters, as Meta attempts to offset rising costs linked to building AI infrastructure and streamline operations.

No final decision has been made on the scale or timing of the layoffs, the sources said, adding that senior executives have already asked leaders across the organisation to begin identifying areas where headcount could be reduced.

Meta did not immediately respond to Reuters’ request for comment.

If implemented at the proposed scale, the layoffs would represent Meta’s most significant workforce reduction since its restructuring drive in 2022 and 2023, which the company labelled the “year of efficiency”.

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Potential cuts could exceed previous job reductions

Meta employed nearly 79,000 people as of December 31, according to its latest regulatory filing.

During its previous restructuring cycle, the company cut 11,000 jobs in November 2022, equivalent to roughly 13% of its workforce at the time. Four months later, it announced another round of layoffs affecting around 10,000 employees.

A new reduction affecting roughly one-fifth of the workforce would therefore surpass those earlier cuts, marking one of the most significant restructurings in the company’s history.

The potential layoffs come as Meta’s leadership seeks to balance the high costs of AI infrastructure with operational efficiency.

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Zuckerberg doubles down on generative AI

Chief executive Mark Zuckerberg has spent the past year pushing Meta to compete more aggressively in the generative AI race against rivals such as OpenAI, Google and Microsoft.

To strengthen its AI capabilities, Meta has been offering unusually large compensation packages to top researchers, with some deals reportedly worth hundreds of millions of dollars over several years, according to Reuters.

The company has also outlined plans to invest around $600 billion in building data centre infrastructure by 2028, part of a long-term strategy to support AI training and large-scale computing needs.

Earlier this week, Meta acquired Moltbook, a social networking platform designed for AI agents. Reuters previously reported that the company was also spending at least $2 billion to acquire Chinese AI start-up Manus.

Zuckerberg has suggested that AI-driven productivity gains could allow companies to operate with smaller teams.

In January, he said that projects that once required large teams could now be completed by “a single very talented person” using advanced AI tools.

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Part of a broader tech industry trend

Meta’s potential layoffs reflect a wider shift across the technology industry as companies reassess workforce needs in the era of artificial intelligence.

Several technology firms have already begun cutting jobs while simultaneously increasing AI investment.

Amazon confirmed earlier this year that it would eliminate around 16,000 jobs, or roughly 10% of its workforce, as part of cost-cutting measures.

Last month, the financial technology company Block cut nearly half of its workforce, with chief executive Jack Dorsey citing the growing capability of AI tools to allow companies to “do more with smaller teams”, according to Reuters.

Advances in AI systems are likely to reshape corporate workforce structures, particularly in technology companies where automation can replace or streamline certain roles.

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Pressure to regain AI momentum

Meta’s AI strategy has not been without challenges.

Last year, the company faced criticism over the performance of its Llama 4 models, including allegations that benchmark results used to promote early versions were misleading, according to Reuters.

The company later scrapped the release of the largest model in the series, known as Behemoth, which had been expected to launch in the summer.

To regain momentum, Meta’s newly formed superintelligence team is now working on a next-generation AI model internally referred to as “Avocado”. However, sources told Reuters that the model’s performance has so far fallen short of internal expectations.

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A pivotal moment for Meta’s workforce

The potential layoffs underscore the scale of change sweeping through the technology industry as AI becomes central to corporate strategy.

For Meta, the challenge will be balancing massive infrastructure spending, aggressive AI development and workforce restructuring without undermining its core businesses across social media and digital advertising.

If the company proceeds with layoffs affecting up to one-fifth of its employees, it would mark another turning point in the sector’s transition toward AI-driven productivity and leaner teams.

For workers across the technology industry, the message is becoming clearer: the AI revolution is reshaping not only products and services but also the size and structure of corporate workforces.