Meta Platforms is reportedly planning large-scale layoffs that could affect 20% or more of its workforce, according to sources familiar with the matter. The move is said to be part of the company’s strategy to manage the growing costs of artificial intelligence infrastructure and improve operational efficiency.

People close to the discussions told Reuters that no final decision has been made yet regarding the exact number of layoffs or the timeline for the cuts. However, senior executives have reportedly begun discussing the potential reductions with other leaders across the company.

A spokesperson for Meta, Andy Stone, described the reports as “speculative reporting about theoretical approaches” when responding to questions about the plan.

Potentially the Largest Layoffs Since 2022

If Meta proceeds with cutting around 20% of its workforce, it would represent the company’s largest job reduction since its restructuring in 2022–2023, which CEO Mark Zuckerberg referred to as the company’s “year of efficiency.”

Meta had nearly 79,000 employees as of December 31, according to its most recent financial filing.

During the earlier restructuring:

• The company laid off 11,000 employees in November 2022, around 13% of its workforce at the time.
• About four months later, another 10,000 jobs were cut as part of ongoing cost reductions.

AI Investment Driving Strategic Shift

Over the past year, Zuckerberg has been aggressively pushing Meta to compete in the rapidly expanding field of generative artificial intelligence.

The company has reportedly offered massive compensation packages — some worth hundreds of millions of dollars over four years — to recruit leading AI researchers for a new superintelligence research team.

Meta has also announced plans to invest up to $600 billion in data centers by 2028 to support its AI infrastructure.

In addition, the company recently acquired Moltbook and is reportedly spending at least $2 billion to purchase the Chinese AI startup Manus.

AI Efficiency Changing Workforce Needs

Zuckerberg has hinted that AI tools are already reducing the number of employees needed for certain projects.

Earlier this year, he said that some projects that previously required large teams can now be completed by a single highly skilled engineer using AI-assisted tools.

This shift toward automation and AI productivity is increasingly influencing workforce decisions across the technology sector.

Part of a Broader Tech Industry Trend

Meta’s potential layoffs mirror similar actions by other major technology companies.

In January, Amazon confirmed it would cut around 16,000 jobs, roughly 10% of its workforce.

Meanwhile, fintech company Block Inc. recently reduced nearly half of its staff, with CEO Jack Dorsey citing the increasing capability of AI tools to allow companies to operate with smaller teams.

Challenges With Meta’s AI Models

Despite its aggressive investments, Meta has faced setbacks with its AI development efforts.

The company’s Llama 4 models drew criticism last year after researchers accused the company of using misleading benchmark results during early testing.

Meta also canceled the planned release of its largest model, Behemoth, which had been expected to launch last summer.

A new AI model currently in development, called Avocado, is being built by Meta’s superintelligence team to regain momentum. However, early reports suggest its performance has not yet met internal expectations.

What Could Come Next

If implemented, the layoffs would represent another major transformation for Meta as it reshapes its workforce around AI-driven productivity and infrastructure investment.

The company has not confirmed a timeline for any potential cuts, but discussions among senior leadership suggest significant changes may be coming as Meta continues to prioritize artificial intelligence development.