Meta to cut over 20% of workforce due to AI costs

Meta Platforms is reportedly considering a major round of layoffs that could affect more than 20 per cent of its global workforce as the company moves to manage the growing costs of artificial intelligence infrastructure.

According to a report by Reuters, three sources familiar with the discussions said senior executives have begun informing internal leaders to prepare plans for potential workforce reductions.

The sources said the discussions are still in the planning stage and that no timeline has been finalised for the layoffs. They also noted that the final scale of the cuts has yet to be determined.

If implemented, the layoffs could become the largest workforce reduction at Meta since the company undertook a sweeping restructuring exercise between 2022 and 2023.

As of December 31, the company employed nearly 79,000 workers globally, according to its most recent regulatory filing.

Responding to questions about the report, Meta spokesperson Andy Stone described the claims as speculative.

“This is speculative reporting about theoretical approaches,” Stone told Reuters.

The possible job cuts come as Meta and other global technology firms increase spending on artificial intelligence development, data centres and computing infrastructure needed to power AI tools.

AI expansion drives rising operational costs

Meta has been aggressively investing in artificial intelligence as competition intensifies among major technology companies racing to dominate the emerging AI ecosystem.

The company’s chief executive officer, Mark Zuckerberg, has repeatedly said artificial intelligence will play a central role in Meta’s long-term strategy.

In June 2025, the company announced plans to fully automate its advertising systems using AI by the end of 2026.

Under the plan, businesses would be able to define advertising goals, enter campaign budgets and allow Meta’s AI tools to automatically manage targeting, delivery and optimisation.

Zuckerberg said such systems are designed to deliver measurable results at scale for advertisers while simplifying the advertising process.

The push toward automation, however, has significantly increased the company’s spending on computing infrastructure, including advanced chips and large-scale data centres required to train and operate AI models.

Technology companies globally have ramped up such investments in recent years as artificial intelligence becomes a central part of digital services ranging from advertising to content recommendations and messaging tools.

Previous restructuring and layoffs

Meta has already carried out several rounds of layoffs in recent years as part of broader cost-cutting and restructuring efforts.

In January 2025, the company announced plans to cut about five per cent of its workforce, citing performance-related factors.

That followed larger layoffs conducted during 2022 and 2023 when Meta reduced thousands of jobs while restructuring its operations.

Those earlier cuts were widely seen as part of a shift in strategy after the company significantly increased spending on new technologies and long-term innovation projects.

Industry analysts say the latest discussions about potential layoffs reflect the broader transformation taking place across the technology sector as companies adapt to AI-driven workflows.

Many firms are exploring ways to streamline operations and reduce staffing levels in areas where artificial intelligence can automate certain tasks.

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For Meta, the challenge is balancing aggressive investments in AI development while maintaining financial discipline and operational efficiency.

Although the company has not confirmed any immediate plans for layoffs, sources told Reuters that internal discussions suggest Meta is preparing for structural changes as it positions itself for a future increasingly shaped by artificial intelligence.

If a workforce reduction of more than 20 per cent eventually takes place, it would mark one of the largest restructuring moves by a major technology company in recent years.