Meta may cut up to 16,000 jobs as CEO Mark Zuckerberg doubles down on AI investments

Possible cuts could affect around 16,000 employees as Meta expands AI spending and restructures teams, Reuters reports.

• Meta may cut 20% of workforce to fund AI projects
• No timeline set and scale of layoffs not finalized yet
• Layoffs would be Meta's largest since previous restructuring

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Meta Platforms is considering sweeping layoffs that could affect 20 percent or more of its workforce as the company ramps up spending on artificial intelligence infrastructure, according to a Reuters report citing people familiar with the matter.

However, no timeline has been set and the scale of the potential cuts has not been finalised, Reuters reported.

Senior Meta executives have recently informed other top leaders about the possibility of workforce reductions and asked them to begin planning how to trim teams, anonymous sources told Reuters.

Responding to the report, Meta spokesperson Andy Stone said: “This is speculative reporting about theoretical approaches.”

Meta employed nearly 79,000 people as of December 31, according to the company’s latest filing. If the company proceeds with a 20 percent reduction, it could affect roughly 16,000 employees.

That would mark the largest workforce reduction at Meta since the company’s restructuring during what CEO Mark Zuckerberg previously described as the “year of efficiency”.

Layoffs would exceed Meta’s earlier cuts

Meta carried out significant layoffs during 2022 and 2023 as part of a broader restructuring.

In November 2022, the company cut about 11,000 jobs, representing roughly 13 percent of its workforce at the time. About four months later, it announced another round of cuts affecting around 10,000 employees.

Those measures were introduced as Meta attempted to streamline operations and shift spending priorities.

AI spending accelerates

The possible layoffs come as Meta increases its investments in artificial intelligence, particularly generative AI systems.

Over the past year, Zuckerberg has pushed the company to compete more aggressively in the generative AI race. Meta has offered large compensation package, some worth hundreds of millions of dollars over four years, to recruit leading AI researchers to a new “superintelligence” team.

The company has said it plans to invest about $600 billion to build data centres by 2028 to support its AI ambitions.

Earlier this week, Meta acquired Moltbook, a social networking platform designed for AI agents. The company is also spending at least $2 billion to acquire the Chinese AI startup Manus.

Zuckerberg has also indicated that advances in AI tools may allow smaller teams to complete work that previously required larger groups.

Speaking in January, he said he was beginning to see “projects that used to require big teams now be accomplished by a single very talented person.”

AI development challenges

Meta’s increased focus on AI follows challenges related to its Llama 4 models last year.

The company faced criticism after early versions of the models were found to have produced misleading benchmark results. Meta also scrapped plans to release the largest version of the model, known as Behemoth, which had been scheduled for launch in the summer.

Meta’s internal superintelligence group has been working on a new model called Avocado to improve the company’s position in the AI race. However, Reuters reported that the model’s performance has fallen short of expectations and its release has been delayed.

AI-linked job cuts spreading across tech

Meta’s reported layoff plans come amid a broader pattern of workforce reductions among technology companies this year, with several executives citing advances in AI tools.

In January, Amazon confirmed plans to cut about 16,000 jobs, representing nearly 10 percent of its workforce.

Last month, fintech company Block reduced nearly half of its staff, with CEO Jack Dorsey saying the company was increasingly relying on AI tools to improve productivity.