Menlo Park: Meta has been considering large scale layoffs that could affect around 20 percent or more of its workforce, according to sources familiar with internal discussions.
The company has been examining the job reductions as part of efforts to manage rising costs linked to artificial intelligence infrastructure and to prepare for productivity gains expected from AI assisted work systems.
Executives at Meta have recently informed senior leaders to begin planning workforce reductions across departments. The sources indicated that the final number of layoffs has not yet been determined and that a timeline for the cuts has not been set.
If the reduction reaches around 20 percent of employees, the move would represent the company’s largest round of layoffs since the restructuring phase that began in late 2022 and early 2023. At the end of December, Meta employed nearly 79,000 people, according to company filings.
During the earlier restructuring, the company eliminated 11,000 jobs in November 2022, representing about 13 percent of its workforce at that time. Approximately four months later, another 10,000 positions were cut as part of cost reduction measures.
Chief executive Mark Zuckerberg has pushed the company to expand its capabilities in generative artificial intelligence in order to compete with other technology firms. To strengthen its AI research, the company has offered high compensation packages to recruit leading AI specialists for a new superintelligence research team.
The company has also committed to major infrastructure spending. Meta has said it plans to invest around $600 billion (£449.29 billion) by 2028 to develop new data centres required to support AI operations.
The company has also been expanding through acquisitions and partnerships in the AI sector. Earlier in the week, Meta acquired Moltbook, a social networking platform designed for AI agents. Reports have also indicated that the company plans to spend at least $2 billion (£1.49 billion) to acquire Chinese artificial intelligence startup Manus.
Zuckerberg has suggested that artificial intelligence tools could significantly improve productivity. Zuckerberg said that, “Projects that used to require big teams can now be accomplished by a single very talented person.”
Amazon confirmed in January that it would cut about 16,000 jobs, representing nearly 10 percent of its workforce. Fintech company Block also reduced nearly half of its staff, with chief executive Jack Dorsey pointing to AI tools as one of the factors enabling greater efficiency.
Despite heavy investment in artificial intelligence, Meta has faced some technical setbacks. The company’s Llama 4 models received criticism last year for benchmark issues, and the largest version of the system, known as Behemoth, was not released as planned.
Engineers working on a new AI model known as Avocado have been attempting to improve the company’s position in advanced artificial intelligence development, although the model has reportedly not yet met performance expectations.
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