Meta to reduce workforce by 20% amid AI push

According to sources cited by Reuters, Meta is reportedly getting ready for significant layoffs that could impact about one-fifth of its workforce. The decision is related to the company’s significant investment in artificial intelligence (AI) infrastructure and its belief that AI tools will improve operations and eliminate the need for large teams. Senior executives have reportedly already started talking about plans with internal leaders, despite the lack of a final figure or timeline.
Meta would undergo its biggest reorganisation since 2022–2023, when it eliminated roughly 21,000 jobs in two rounds of layoffs, if the cuts reach 20%. The new cuts may be even more substantial given that Meta employed close to 79,000 people at the end of 2023.
By committing hundreds of billions of dollars to construct new data centers by 2028 and offering enormous compensation packages to entice top researchers, the company has been making significant investments in artificial intelligence. It recently purchased Moltbook, an AI agent social networking site, and is investing billions to purchase Manus, a Chinese AI startup. According to Mark Zuckerberg, CEO of Meta, AI is already increasing productivity, with smaller teams or even individuals handling tasks that previously required large teams.
Following setbacks with its Llama 4 models last year, including criticism over deceptive benchmark results and the cancellation of its largest planned model, Behemoth, Meta is making this push. According to reports, the company’s new model, Avocado, has also had trouble living up to expectations, but it is working hard with its superintelligence team to catch up.
A broader trend in the tech sector is reflected in the planned layoffs. Earlier this year, Amazon laid off roughly 16,000 employees, and the fintech company Block laid off almost half of its workforce, both citing AI’s increasing capacity to displace traditional jobs.

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