Meta is reportedly preparing for a major round of layoffs that could affect up to 20 percent of its global workforce, as the tech giant looks to offset the rising costs of investing in artificial intelligence while transitioning its operations to AI-driven productivity.
According to sources familiar with the discussions, senior company executives have begun signaling to leadership teams that job cuts are likely, although the size and timing of the cuts have not yet been finalized. If the cuts reach the 20 percent mark currently being discussed, it would be the largest workforce reduction since the company’s major restructuring in 2022 and 2023.
A spokesperson for Meta Platforms declined to confirm the plans, calling reports of possible layoffs “speculative reporting on theoretical approaches.” However, people close to the company say internal discussions about streamlining teams have intensified in recent weeks.
Meta employed nearly 79,000 people worldwide at the end of last year. A 20 percent reduction would potentially affect more than 15,000 jobs.
The possible 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 in new AI data centers and computing capacity over the next few years. The company has signaled it plans to spend up to $600 billion building new data center infrastructure by 2028 as it scales its AI capabilities.
At the same time, Meta is offering huge 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 to compete in the rapidly escalating global race for AI talent.
Additionally, the company has expanded through acquisitions to strengthen its position in the AI space. Earlier this week, Meta confirmed its acquisition of Moltbook, a social networking platform designed specifically for AI agents, and the company is reportedly spending at least $2 billion to acquire Chinese AI startup Manus.
However, Meta’s AI development push was not without setbacks. Its latest large language models have been criticized by developers and researchers, particularly due to concerns that benchmark results for previous versions of the company’s Llama models had overstated performance.
Meta ultimately abandoned its 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 in development under the codename Avocado, aims to restore Meta’s standing in the increasingly competitive generative AI market, although insiders say progress has been slower than hoped.
Behind the restructuring discussions is a broader shift in the way big tech companies expect AI to transform their workforce.
Zuckerberg has repeatedly suggested that improvements in AI tools will allow companies to achieve the same performance with far fewer employees. Earlier this year, he said projects that previously required large teams could now be carried out by a single highly skilled engineer with the support of advanced AI systems.
This shift toward an “AI-enabled workforce” is increasingly changing hiring strategies across the tech industry.
Major U.S. tech companies have already begun cutting jobs while increasing spending on AI infrastructure and automation tools. Amazon confirmed earlier this year that it would cut around 16,000 jobs, while payments company Block recently announced plans to cut nearly half of its workforce, citing productivity gains from AI.
Workforce experts say the trend reflects a broader realignment across the tech sector following the surge in hiring during the pandemic.
Thea Fineren, chief people officer at IT services firm Advania, said the restructuring being considered at Meta reflects a broader shift in the corporate world as AI begins to automate large portions of routine work.
She said companies that expanded aggressively during the pandemic are now reevaluating their workforce structures in light of rapidly advancing automation technologies.
“Even the world’s most advanced companies are not immune to the increasing impact of automation and overstaffing in the AI age,” she said. “Organizations have grown rapidly during the pandemic and are now faced with the reality of that growth alongside major technological changes.”
Fineren said HR leaders increasingly need to plan for ongoing workforce transformation rather than reacting after technological disruption has already occurred.
Companies should identify the roles most vulnerable to automation while investing in retraining programs and new career paths, she said, adding that companies must maintain a human-centered approach even as AI becomes more integrated into operations.
As artificial intelligence systems take on transactional and repetitive tasks, she argued, employees will increasingly focus on higher-value work that requires judgment, creativity and human interaction.
“It’s not about people versus machines,” she said. “It’s about giving people the best opportunity to add value in areas where human skills still matter most.”
But for Meta, the coming months could be another crucial chapter in its attempt to transform itself from a social media company into one of the world’s leading AI platforms, even if that transition comes with significant job losses.
