AI Triggers the Largest Wave of Layoffs in Meta’s History

Meta, the parent company of Facebook and Instagram, is reportedly planning to cut its workforce by up to 20% or more, as part of efforts to offset massive investments in artificial intelligence infrastructure.

According to sources cited by Reuters, the move is aimed at improving operational efficiency, particularly as the company expands its use of AI-powered tools in the workplace.

The company has not yet specified a timeline for the layoffs or the exact number of employees who may be affected. However, sources indicate that senior executives have been instructed to begin preparing workforce reduction plans.

Responding to these reports, Meta spokesperson Andy Stone said that the information circulating is “based on speculation related to theoretical projections.”

If implemented, this would mark the largest round of layoffs in Meta’s history since the restructuring plan carried out in late 2022 and early 2023, which CEO Mark Zuckerberg described at the time as the “Year of Efficiency.”

According to the company’s latest disclosures, Meta had approximately 79,000 employees as of December 31. The company had previously laid off around 11,000 employees in November 2022 (about 13% of its workforce), followed by an additional 10,000 job cuts announced four months later.

At the same time, Zuckerberg has been working since last year to strengthen the company’s competitiveness in the field of generative AI. Meta has offered substantial compensation packages to attract top researchers to join its advanced AI teams.

Additionally, the company has announced plans to invest around $600 billion in building new data centers by 2028 to support its AI infrastructure.

These efforts coincide with other strategic moves, including Meta’s acquisition of the AI-focused platform Multibook, as well as an investment of at least $2 billion to acquire the Chinese startup Manus, according to previous reports.

Zuckerberg believes these investments are already yielding efficiency gains, noting in earlier remarks that some projects which previously required full teams can now be carried out by a single highly skilled individual.