Meta, the tech giant behind Facebook, has confirmed plans for significant workforce reductions that could result in up to 16,000 employees losing their jobs. The proposed layoffs represent as much as 20 percent of the company’s nearly 79,000-strong workforce, marking one of the most substantial downsizing efforts in Meta's history.
Internal discussions underway
Three sources familiar with the matter informed Reuters that internal preparations for the job cuts are already underway. Senior executives have reportedly been tasked with identifying cost-saving measures to meet the company's financial goals. However, the exact timeline for implementing the layoffs has yet to be finalized.
A Meta spokesperson responded to Reuters' inquiries, stating: "This is speculative reporting about theoretical approaches."
If the proposed layoffs proceed as planned, they would be the largest since Meta's "Year of Efficiency" in late 2022 and early 2023, during which the company cut approximately 21,000 jobs in two separate rounds.
AI ambitions drive cost pressures
The layoffs are closely tied to Meta's aggressive investments in artificial intelligence. The company has allocated between $115 billion and $135 billion for AI infrastructure in 2025 alone. These investments include funding for data centers, proprietary chips, and high-profile talent acquisitions. One notable example is the $14.3 billion investment in June 2025 to bring Scale AI founder Alexandr Wang into the company as Chief AI Officer.
Despite these significant investments, Meta faces challenges in its AI development efforts. Its flagship AI model, codenamed "Avocado", has experienced multiple delays and is now expected to launch no earlier than May 2026. Internal tests have revealed that the model is struggling to keep pace with competitors like Google, OpenAI, and Anthropic in areas such as logical reasoning, software development, and autonomous action. Meta executives are reportedly considering licensing Google’s Gemini to bolster their AI products temporarily.
Strategic shift and structural changes
Meta’s shift in strategy has been another contributing factor to the impending layoffs. The company is transitioning from its historical commitment to open-source AI models, such as the Llama series, to focusing on proprietary, paid AI products aimed at driving direct revenue. This strategic pivot has already led to significant internal restructuring, including the departure of AI chief scientist Yann LeCun and layoffs within Meta’s research division, FAIR.
The company’s broader cost-cutting measures reflect the dual pressures of maintaining its ambitious AI goals while adapting to a rapidly changing market. Critics, including OpenAI CEO Sam Altman, have highlighted a trend of "AI-washing", where companies use artificial intelligence as a justification for workforce reductions that may also stem from over-hiring during the pandemic-era tech boom. In Meta’s case, both cost pressures from AI investments and strategic restructuring appear to play a role in the layoffs.
Scope of the layoffs
Meta’s planned workforce reduction outlines the following key details:
- Number of affected employees: Up to 20 percent of its 79,000-strong workforce, potentially impacting 15,000 to 16,000 positions.
- Timeline: Exact dates for the layoffs have not been set, with internal planning still ongoing.
- Focus on AI: The company has allocated $115–$135 billion for AI-related infrastructure in 2025.
- Strategic transition: A shift away from open-source AI models toward proprietary, commercial offerings.
While the full scale and timing of the layoffs remain unconfirmed, Meta appears to be navigating a period of profound transformation driven by its AI ambitions and the associated financial challenges. As the company continues to invest heavily in cutting-edge technology, the impact of these decisions on its workforce and business trajectory will be closely watched.
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