Meta is planning significant layoffs, which could affect about 20% of its workforce. Sources familiar with the situation shared with Reuters that these cuts aim to counter high costs tied to artificial intelligence (AI) and to boost efficiency. Although no specific date is set for these layoffs, senior leaders have been instructed to prepare.
If implemented, this would be Meta’s largest workforce reduction since its “year of efficiency” in 2022-2023. Last year, the company already laid off around 21,000 employees across two rounds of cuts, which represented a significant shrinkage of its workforce, then numbering around 79,000.
Mark Zuckerberg, Meta’s CEO, is pushing the company to aggressively compete in the AI space. Recently, Meta has offered lucrative pay packages to attract top AI researchers. They plan to invest a staggering $600 billion to build data centers by 2028.
In a move highlighting this focus, Meta recently acquired Moltbook, a platform designed for AI agents, and is reportedly spending around $2 billion to buy the Chinese AI startup Manus. Zuckerberg mentioned earlier this year that investments in AI are allowing fewer people to accomplish what used to require larger teams.
Meta isn’t alone in making such cuts. Many tech companies are reassessing their workforce as they adopt AI technology. Amazon announced layoffs of about 16,000 employees, which is roughly 10% of its workforce. Similarly, fintech firm Block cut nearly half of its staff, with CEO Jack Dorsey attributing the downsizing to the capabilities of AI tools.
Despite the push for AI advancements, Meta has faced challenges. The company’s previous AI model, Llama 4, was criticized for misleading results, leading to the cancellation of its largest model, Behemoth. To improve its standing, the superintelligence team at Meta is developing a new model called Avocado, but initial performance has not met expectations.
As companies like Meta embrace AI, the landscape of work is changing. A McKinsey report found that AI could automate up to 25% of tasks across various jobs. This shift raises questions about the future of work and the need for upskilling to keep pace with technological advancements.
As Meta navigates these changes, it reflects a broader trend in the industry where efficiency and innovation are becoming paramount.
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