Meta estimates mass layoffs will impact 20% of the workforce amid a surge in AI spending

Meta Platforms is reportedly considering massive layoffs that could affect 20% or more of its workforce, as the tech giant grapples with rising costs related to its aggressive push into artificial intelligence.

According to a Reuters report, these potential cuts are part of a broader effort to offset huge spending on AI infrastructure, acquisitions and human resources. Meta employed nearly 79,000 people as of Dec. 31, based on the latest regulatory filing, meaning any cuts on that scale would impact tens of thousands of workers.

A Meta spokesperson downplayed the report, describing it as a “speculative report on a theoretical approach,” and did not confirm plans for layoffs in the near future.

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The development comes amid a wider wave of layoffs in the tech sector, with a growing number of companies citing AI-driven efficiencies as a reason to downsize. Payments company Block is one of the latest companies to announce layoffs due to automation and operational streamlining.

However, narratives linking layoffs to AI have attracted attention. Industry observers – including OpenAI CEO Sam Altman – have warned about “AI-washing,” where companies attribute workforce reductions to automation while masking deeper issues such as over-expansion during the pandemic-era tech boom.

Meta has made significant workforce reductions in recent years. In November 2022, the company cut about 11,000 jobs, followed by an additional 10,000 layoffs in March 2023 as part of what CEO Mark Zuckerberg described as a “year of efficiency.”