Meta Platforms is considering cutting 20% or more of its workforce-roughly 15,800 employees-to offset soaring artificial intelligence expenditures. The move would mark its largest reduction since the 2022-2023 “year of efficiency” that eliminated 21,000 jobs.
The company plans to spend up to $135 billion on AI infrastructure by 2026, including a $27 billion cloud services deal with Nebius. Despite improved ad tools and revenue gains, Meta has yet to launch a competitive AI model, with its Avocado project reportedly underperforming.
Analysts estimate the layoffs could save $6 billion annually, boosting adjusted core earnings by 5%. Rosenblatt Securities analyst Barton Crockett noted cuts could exceed 20% if AI significantly boosts productivity.
Meta dismissed the Reuters report as “speculative,” though its stock rose nearly 3% on March 16. The company’s shares are down 7% year-to-date after a 13% gain in 2025.
Globally, over 61,000 AI-linked layoffs have been announced since November, including at Amazon and Wisetech. Some analysts argue AI is being used as cover for cuts driven by earlier over-hiring.