Meta may be preparing for another major round of job cuts that could affect 20% or more of its workforce, according to a new report from Reuters.
The potential layoffs are reportedly being considered as the company looks for ways to balance the growing costs of its massive investments in artificial intelligence. Meta has been pouring billions into AI infrastructure and talent, including plans to spend as much as $72 billion on AI infrastructure as the industry’s computing arms race intensifies.
The company has also been aggressively hiring and pursuing acquisitions tied to AI development. According to previous reports, Meta even attempted to recruit top researchers from competitors like OpenAI with compensation offers reaching $100 million.
As of December 31, Meta employed nearly 79,000 people, according to a recent company filing.
However, Meta has downplayed the report. In a statement, a company spokesperson described the claims as “speculative reporting about theoretical approaches.”
The report arrives during a broader wave of layoffs across the tech industry. Several companies have announced workforce reductions while citing AI-driven efficiency gains. One recent example is Block, which cut thousands of jobs earlier this year.
Still, some analysts and industry leaders question whether artificial intelligence is the real reason behind many layoffs. Critics argue that companies are engaging in what some call “AI-washing” — using AI as a justification for cuts that are actually tied to earlier over-hiring during the pandemic. Even OpenAI CEO Sam Altman has acknowledged the possibility that some layoffs may be framed this way, according to a report from the San Francisco Chronicle.
Meta has carried out major layoffs before. In November 2022, the company eliminated about 11,000 jobs, representing roughly 13% of its workforce at the time. A second round followed in March 2023, when Meta announced plans to cut another 10,000 positions.
If the latest reports prove accurate, the new layoffs could mark the largest workforce reduction in Meta’s history as the company doubles down on artificial intelligence and infrastructure investments.