Meta Platforms Inc. may be preparing to reduce its workforce by over 20% as it invests heavily in artificial intelligence, according to inside sources.

This potential downsizing could impact more than 15,000 employees at the tech behemoth, as reported by Reuters.

Reports suggest that senior executives have instructed department heads to strategize on reducing staff numbers, aligning with Meta’s intensified focus on AI and automation technologies.

Although the precise extent of these layoffs has yet to be determined, if executed, this would represent the most significant reduction in jobs since CEO Mark Zuckerberg’s ‘year of efficiency’ initiative in 2022, which saw more than 21,000 positions cut.

As of the end of last year, Meta’s workforce numbered approximately 79,000 employees.

In response to these reports, a company spokesperson informed the Daily Mail that such claims are merely “speculative reporting about theoretical approaches.”

The looming cuts come as Zuckerberg doubles down on AI – pouring vast sums into new data centers, research teams and powerful AI models. 

Meta has 31 data centers across the globe, with server space to process and store the billions of messages, posts, and images circulated on Facebook, Instagram and WhatsApp every single second of the day. 

Meta could slash more than 20 percent of its workforce as the Facebook owner pours billions into artificial intelligence

If carried out, the cuts would mark the company’s biggest job purge since Mark Zuckerberg launched his ‘year of efficiency’ in 2022 and 2023, when more than 21,000 roles were eliminated

In June 2025, the company invested $14.3 billion in Scale AI, a software company that was poached by Meta along with its CEO Alexandr Wang.

Meta revealed in its fourth-quarter earnings report in January that it expects to spend between $115 billion and $135 billion on AI this year.

When combined with planned investments from Amazon, Alphabet, and Microsoft, total AI spending by the four tech giants could reach around $700 billion.

Despite reports of planned layoffs from Reuters, the company’s push to improve efficiency through its AI tools appears to be paying off. 

Investors reacted positively, with Meta’s stock rising 3 percent to 632 in early trading this morning.

Meta is not alone in linking artificial intelligence to layoffs.

Amazon cut around 16,000 jobs in January as it restructures while investing heavily in AI.

It was the second major round of layoffs in just three months after slashing 14,000 roles in October. 

Meta revealed in its fourth-quarter earnings report in January that it expects to spend between $115billion and $135billion on AI this year

Meta has 31 data centers across the globe, with server space to process and store the billions of messages, posts, and images circulated on Facebook, Instagram and WhatsApp every single second of the day (PICTURED: Meta data center in Dublin, Ireland)

Twitter co-founder Jack Dorsey is cutting half the jobs at his payments firm, Block, as it shifts toward smaller teams powered by automation.

Dorsey stated on X in late February that this move was meant to take a ‘hard, clear action now’ rather than opting to slowly reduce jobs and risk lowering morale among workers.

Software company Atlassian also announced plans to cut about 10 percent of its workforce to focus on AI.

Across the US, more than 12,000 layoffs this year have already been tied directly to artificial intelligence, according to consulting firm Challenger, Gray & Christmas.