NEW YORK (Reuters) — Meta, the parent company of Facebook, Instagram, and WhatsApp, is reportedly planning significant layoffs impacting a substantial portion of its workforce, potentially 20% or more, according to sources familiar with the matter. These potential job cuts come as Meta looks to balance its investments in artificial intelligence (AI) infrastructure and leverage AI-driven efficiencies to streamline operations.
While the exact date and scope of the potential layoffs remain unconfirmed, insiders suggest that Meta’s top executives have communicated the plans to senior leadership, instructing them to strategize on how to reduce team sizes.
When asked about the potential cuts, Meta spokesperson Andy Stone stated, “This is speculative reporting about theoretical approaches.”
If Meta proceeds with a 20% reduction in workforce, these layoffs would surpass the scale of the company’s restructuring efforts in late 2022 and early 2023, dubbed the “year of efficiency.” As of December 31, Meta employed nearly 79,000 individuals, according to its latest filings.
In November 2022, Meta laid off 11,000 employees, approximately 13% of its workforce at the time. This was followed by another round of cuts affecting an additional 10,000 jobs.
Over the past year, Meta CEO Mark Zuckerberg has emphasized the company’s focus on generative AI, attracting top AI researchers to a new “superintelligence” team with lucrative compensation packages.
Meta intends to invest $600 billion in data center construction by 2028. The company recently acquired Moltbook, an AI agent social networking platform. Furthermore, Meta is reportedly investing at least $2 billion in Chinese AI startup Manus, according to previous reports.
Zuckerberg has highlighted the potential for increased efficiency through these investments, stating that projects requiring large teams can now be accomplished by a single, talented individual.
Meta’s potential layoffs reflect a broader trend among major U.S. companies, particularly in the technology sector, where executives are citing advancements in AI systems as a driver for organizational changes.
Amazon confirmed plans to cut approximately 16,000 jobs, representing nearly 10% of its workforce, in January. Last month, fintech company Block reduced nearly half of its staff, with CEO Jack Dorsey attributing the cuts to the growing capabilities of AI tools in enabling companies to achieve more with smaller teams.
Meta’s AI investments follow previous challenges with its Llama models, including concerns about misleading benchmark results. The company abandoned the release of its largest Llama model, Behemoth.
The superintelligence team is reportedly developing a new model, Avocado, but its performance has also fallen short of expectations.
