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Key Takeaways Meta is weighing layoffs that could affect 20% of staff — around 16,000 jobs, according to a new report.
The cuts are meant to offset surging costs from massive AI infrastructure investments.
No final timeline or exact number of layoffs has been set, but senior leaders have been told to prepare.
Meta is reportedly planning widespread layoffs that could impact at least 20% of the company, three sources familiar with the issue recently told Reuters. The move comes as Meta tries to offset expensive bets on AI and set itself up for more workplace efficiency brought on by the technology.
The sources mentioned that Meta has not set a date for the layoffs. However, top Meta executives have indicated that layoffs are coming to other senior management and instructed them to start making plans to keep functioning with a shrunken workforce, per Reuters.
For now, Meta is publicly downplaying the reports. Meta spokesperson Andy Stone told Reuters that “this is speculative reporting about theoretical approaches.”
Mark Zuckerberg, Meta CEO. Photographer: Kyle Grillot/Bloomberg
Payroll is one of Meta’s highest recurring costs. Cutting about 20% of staff would meaningfully lower ongoing salary, benefits and stock-based compensation expenses, according to Newsday. Meta employed about 79,000 workers as of December 31, so a layoff of 20% would impact roughly 16,000 workers. The job cuts would be the most significant round of layoffs since a restructuring in late 2022 and early 2023 that saw over 21,000 employees let go in two waves.
Meta’s billion-dollar AI investment
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