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Meta plans major layoffs as its AI costs increase: Report

Meta is reportedly considering major layoffs, potentially impacting over 20% of its workforce, as the company invests in AI and seeks greater operational efficiency

Meta is gearing up for a mass layoff of its employees, which could affect about 20 per cent or more of the company. The company has been seeking to offset its expenses poured into its artificial intelligence infrastructure and prepare for greater efficiency brought about by AI-assisted workers, three sources familiar with the matter told Reuters.

There has been no set date for the cut, and the magnitude of the lay-off has not been finalised.

The sources said that some manager have been asked to prepare cost-cutting plans but not told their scope or timing.

At the end of 2025, Meta employed nearly 79,000 people, so a potential cut of 20 per cent would mean that roughly 16,000 jobs would be eliminated. The lay-off would be the company’s most significant reduction since 2022, when it cut around 11,000 jobs. Meta had also cut another 10,000 jobs in 2023. In January this year, the company laid off 1,500 people from its Reality Labs division.

The reports had claimed that senior executives have signalled potential workforce reduction to other leaders and asked teams to assess how operations could be streamlined.

The report of the layoffs has come just as CEO Mark Zuckerberg pushes the company to compete more in the generative AI space.

The reports said that while some roles will be automated, most workers are unlikely to be permanently left behind.

Many workers will be expected to shift into new types of jobs, including roles that do not yet exist.

US tech giant Oracle also plans to cut 20,00 to 30,000 jobs to expand its AI data centre capacity, while Amazon also announced its layoff for 16,000 employees as part of its AI restructure plan. Last month, Accenture reported that its promotions would depend on regular use of AI tools. The company had also cut 11,000 jobs, which it believed could not be “reskilled” with AI, over the past few years