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- Meta may cut up to 20% of its workforce as AI investment costs rise.
- The company is said to be ramping up spending on generative AI and data centres.
- The potential cuts are expected to be Meta’s largest since its 2022-2023 restructuring.
Meta is reportedly considering sweeping layoffs that could affect 20% or more of its workforce, as the company moves to offset the rising costs of artificial intelligence (AI) investments and improve efficiency.
According to a report by The Straits Times, citing Reuters, three sources familiar with the matter said the potential job cuts are part of broader efforts to manage the company’s growing AI-related spending.
No date has been set for the layoffs and the scale of the reductions has not been finalised, the sources were quoted as saying.
According to the reports, if the company proceeds with cuts affecting around 20% of its workforce, it is expected to mark Meta’s largest round of layoffs since its restructuring in late 2022 and early 2023, Mark Zuckerberg, Chief Executive Officer previously described as the company’s “year of efficiency”.
Meta employed nearly 79,000 people as of 31 December 2025, according to its latest filing – a 6% increase year-on-year.
In November 2022, the company laid off about 11,000 employees, or roughly 13% of its workforce at the time; and in January this year, it announced planned workforce reductions of about 10% of its Realty Labs division.
Part of a wider trend
Meta’s reported plans reflect a broader pattern among major US companies in the past few months, particularly in the technology sector. In January, Amazon confirmed it would cut around 16,000 jobs, amounting to nearly 10% of its workforce. In February, as reported by Bloomberg, fintech Block reduced nearly half of its staff, with Jack Dorsey, Chief Executive Officer pointing to the growing capabilities of AI tools as enabling companies to do more with smaller teams.
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