The Meta logo appears as reports indicate the company may cut up to 20% of its workforce while expanding investment in artificial intelligence infrastructure.

Meta layoffs could cut 16,000 jobs as AI spending rises

Priyanshu Kumar
By
Priyanshu Kumar
Priyanshu Kumar's avatar
Journalist
- Journalist
3 Min Read

The Meta layoffs could impact nearly 20% of the company’s workforce as executives explore cost reductions linked to growing artificial intelligence investments. Reports on March 14 indicate the cuts may affect about 16,000 employees across Meta’s global operations if plans move forward.

Meta executives recently discussed the Meta layoffs with senior leadership, according to people familiar with the plans. The discussions focus on reducing staffing levels as the company increases spending on AI systems and data infrastructure.

The technology company employed about 79,000 people as of December 31. If the proposed cuts reach 20%, the Meta layoffs would remove nearly 16,000 positions. That scale would mark the company’s largest workforce reduction since its restructuring period known internally as the “year of efficiency.”

Meta workforce reduction linked to growing AI investments

The planned Meta workforce reduction reflects the company’s strategy to expand generative AI development. CEO Mark Zuckerberg has pushed the company to compete more aggressively in the artificial intelligence sector.

Meta has offered large compensation packages to recruit AI researchers for a new superintelligence team. Meanwhile, the company plans to invest about $600 billion to build data centres by 2028.

Zuckerberg has also pointed to efficiency gains created by artificial intelligence. Earlier this year he said projects that once required large teams can now be completed by a single highly skilled engineer.

Meta layoffs follow earlier restructuring wave

The potential Meta layoffs would follow earlier workforce reductions. In November 2022, the company cut around 11,000 jobs, representing about 13% of employees at the time. A few months later, Meta announced another round of cuts affecting about 10,000 workers.

The company has also increased investment in AI companies and platforms. Recently, Meta acquired Moltbook, a social network designed for AI agents. Reports also suggest the company is exploring a $2 billion deal involving a Chinese AI startup called Manus.

The Meta layoffs also come as Meta works to strengthen its AI products. The company faced criticism last year related to benchmark claims involving its Llama 4 models. Development delays also affected the release of the largest version of that model.

Meta’s research teams are now building a new AI system called Avocado. However, early expectations for the model have not yet been met, and the launch timeline has shifted.

Share This Article

Discover more from StrongYes

Subscribe now to keep reading and get access to the full archive.

Continue reading