Meta Platforms plans sweeping layoffs as AI costs mount

Meta Platforms Inc. is planning sweeping layoffs that could affect 20% or more of the company, three people familiar with the matter said, as the world’s largest social media company looks to cut AI cost and prepares for greater efficiency brought on by AI-assisted workers.

No date has been set for the Meta playoffs and the magnitude has not been finalised yet, the people said. Top executives have signalled the plans to other senior leaders and told them to begin planning on how to pare back, two of the people said. The sources spoke on the condition of anonymity as they are not authorised to disclose the job cuts.

“This is speculative reporting about theoretical approaches,” Meta spokesperson Andy Stone said in response to questions about the plan.

If Meta settles on the 20% figure, the layoffs will be the company’s most significant since a restructuring in late 2022 and early 2023 that it dubbed the “year of efficiency”. The company laid off 11,000 staffers in November 2022, or around 13% of its workforce at the time. Around four months later, it announced it was cutting another 10,000 jobs.

As on 31 December 2025, Meta Platforms employed nearly 79,000 people across the world, according to its latest filing.

Focus on Generative AI

Over the last year, CEO Mark Zuckerberg has been pushing Meta to compete more forcefully in Generative AI. The company has offered huge pay packages, some worth hundreds of millions of dollars over four years, to court top AI researchers to a new superintelligence team.

The company has said it plans to invest $600 billion to build data centres by 2028. Earlier this week, it acquired Moltbook, a social networking platform built for AI agents. Meta is also spending at least $2 billion to buy Chinese AI startup Manus, Reuters previously reported.

Zuckerberg has alluded to efficiency gains from the AI investments, saying in January he was starting to see “projects that used to require big teams now be accomplished by a single very talented person”.

Meta’s plans reflect a broader pattern among major US companies, particularly in tech, this year. Executives have pointed to recent improvements in AI systems as one reason for the changes.

In January, Amazon.com Inc. confirmed it would cut some 16,000 jobs, amounting to nearly 10% of its workforce. Last month, the fintech company Block chopped nearly half of its staff, with CEO Jack Dorsey explicitly pointing to AI tools and their growing capability to help companies do more with smaller teams.

Meta’s planned AI investments follow a series of setbacks with its Llama 4 models last year, including criticism it provided misleading results on the benchmarks it used for early versions. It abandoned the release of the largest version of that model, called Behemoth, which had been due out in the summer.

The superintelligence team has been working to reassert the company’s standing this year by building a new model called Avocado, but the performance of that model has also lagged expectations.

Latest

US Sanctions Iranian Exchanges, China Terminal on Oil Purchases

The Trump administration sanctioned three Iranian currency exchanges and a Chinese oil terminal on Friday, as the US adds to pressure on Tehran to end the war a

Dividends, bonus shares and buybacks taxation in India: Rules, rates and reporting process explained

Income from the stock market is taxed based on its type: dividends are taxed as income, and bonus shares are taxed differently upon sale. Here are the tax rules

India Post Payments Bank launches SHG savings account: Zero balance, zero charges; key features, benefits explained

Boosting rural financial inclusion, India Post Payments Bank launches SHG Savings Account to empower women-led SHGs with zero balance banking, doorstep services

JPMorgan Executive Lorna Hajdini’s old remark in spotlight amid allegations of sexual assault: ‘You are a force….’

A former JPMorgan employee has filed a lawsuit against Executive Lorna Hajdini, alleging sexual abuse and racial harassment. The claims include coercion into se

Apple logs record March quarter in India, iPhone sales grow despite market slump; Tim Cook ‘over the moon’

Outgoing CEO Tim Cook reports an 18th straight record quarter as the tech giant captures a 25% value share in the world's second-largest smartphone market.

Topics

Elite Iranian family founded crypto exchange used by IRGC to move millions

Reuters found that the founders of Iran's biggest crypto exchange, Nobitex, are sons of the influential Kharrazi family. Nobitex serves as a bridge to global cr

Shah bowls sensational 3-run last over to lift PSL debutant Hyderabad into the final

Shah bowls sensational 3-run last over to lift PSL debutant Hyderabad into the final

Brewers Brandon Woodruff goes on injured list after experiencing velocity drop in his last start

Brewers' Brandon Woodruff goes on injured list after experiencing velocity drop in his last start

Axar Patel dedicates DC win vs RR to fans who died in Delhi road accident

Axar Patel dedicated Delhi Capitals' win over Rajasthan Royals to two fans killed in a road accident after the RCB match. The tribute followed DC's record chase

US Sanctions Iranian Exchanges, China Terminal on Oil Purchases

The Trump administration sanctioned three Iranian currency exchanges and a Chinese oil terminal on Friday, as the US adds to pressure on Tehran to end the war a

US military reaches deals with 7 tech companies to use their AI on classified systems

US military reaches deals with 7 tech companies to use their AI on classified systems

Pregnant Deepika Padukone spotted on King sets in Cape Town with Shah Rukh Khan – See pics here

Bollywood actor Deepika Padukone, who is expecting her second child with Ranveer Singh, has been photographed on the set of King in Cape Town. The leaked images

The Devil Wears Prada 2 Box Office Collection Day 1: Sequel opens strong in India, races to $50.5 million globally

The Devil Wears Prada 2 records a steady start in India with ₹2.72 crore net on Day 1, while early global numbers cross $50 million, signalling a robust open
spot_img

Related Articles

Popular Categories

spot_imgspot_img