Meta is planning major layoffs as AI and automation reshapes the workforce

Meta is reportedly preparing for a major round of layoffs that could affect up to 20 percent of its global workforce, as the tech giant seeks to reduce the rising costs of investment in artificial intelligence while reshaping its operations around AI-driven manufacturing.

According to sources familiar with these discussions, senior officials in the company have begun to indicate to leadership groups that there may be job cuts, although the scale and time of the reduction has not yet been finalized. If the cuts were to reach the 20 percent level currently being discussed, it would represent the largest reduction in workforce since the company restarted in 2022 and 2023.

A spokesperson for Meta Platform declined to confirm the plans, describing reports of possible layoffs as “speculative reporting on theoretical grounds”. However, people close to the company say internal discussions about the simpler teams have intensified in recent weeks.

Meta employed nearly 79,000 people worldwide at the end of last year. A 20 percent cut could affect more than 15,000 roles.

The possible cuts follow a period of heavy spending on intelligence infrastructure and talent as CEO Mark Zuckerberg pushes to position the company as a leader in artificial intelligence and so-called “high intelligence”.

Meta has already committed to investing hundreds of billions of dollars in new AI data centers and computing power over the next few years. The company has signaled that it plans to spend up to $600 billion to build new data center infrastructure by 2028 as it scales up its AI capabilities.

At the same time, Meta was offering large compensation packages to attract top AI researchers to its new superintelligence research group. Some packages are reportedly worth hundreds of millions of dollars over four years in an effort to compete with rivals in the fast-growing global race for AI talent.

The company also expanded through acquisitions to strengthen its position in the AI ​​sector. Earlier this week Meta confirmed the acquisition of Moltbook, a social media platform designed specifically for AI agents, while reports suggest the company is spending at least $2 billion to acquire Chinese AI startup Manus.

However, the development push for Meta’s AI has not been without its drawbacks. Its latest major language models have faced criticism from developers and researchers, particularly following concerns that the benchmark results of earlier versions of the company’s Llama models have exceeded performance.

Meta eventually abandoned plans to release the largest version of its Llama 4 model, known internally as the Behemoth, after the system failed to meet expectations during testing.

The company’s next flagship AI program, currently in development under the codename Avocado, aims to restore Meta’s position in the competitive AI manufacturing market, although insiders say progress is slower than expected.

Behind the restructuring talks is a broader shift in how big tech companies believe AI will transform their workforce.

Zuckerberg has repeatedly suggested that the development of AI tools will allow companies to achieve the same result with far fewer employees. Earlier this year he said that projects that previously required large teams can now be delivered by a single highly skilled engineer supported by advanced AI systems.

This shift to the “AI-assisted workforce” is increasingly reshaping hiring strategies across the tech industry.

Major US tech companies have begun cutting jobs while simultaneously raising funds for AI infrastructure and automation tools. Amazon confirmed earlier this year that it would cut around 16,000 corporate jobs, and payments company Block recently announced plans to cut nearly half of its workforce, citing productivity gains from AI.

Labor experts say the trend reflects a broader restructuring across the technology sector following rapid recruitment during the violence.

Thea Fineren, chief people officer at IT services firm Advania, said the restructuring being considered at Meta reflects a wider shift in the corporate world as AI begins to take on larger parts of routine work.

He said companies that expanded during the crisis are now re-examining employee structures because of the evolving technology.

“Even the world’s most advanced companies are not immune to the impact of rapid automation and overemployment in the AI ​​age,” he said. “Organizations expanded rapidly during this pandemic and are now faced with the realities of that growth and massive technological change.”

Fineren said HR leaders must proactively plan for workforce changes instead of reacting to technology disruptions.

Businesses must identify roles at high risk of automation while investing in retraining programs and new career paths, adding that companies must maintain a people-centric approach as AI becomes more operational.

As artificial intelligence systems take over manual and repetitive tasks, he said, employees will focus more on high-value work that requires judgment, intelligence and interpersonal skills.

“It’s not people versus machines,” he said. “It’s about giving people the best opportunity to add value in areas where human potential is still the most important.”

For Meta, however, the coming months could mark another important chapter in its quest to transform itself from a communications company into one of the world’s leading AI platforms, even if that transformation comes with significant job losses along the way.