Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, is reportedly considering layoffs that could affect 20% or more of its workforce as the tech giant continues to invest heavily in artificial intelligence.
The potential cuts were first reported by Reuters and could impact tens of thousands of employees. Meta reported nearly 79,000 workers worldwide as of Dec. 31 in its most recent regulatory filing.
According to the report, the layoffs are being explored as a way to offset the company’s aggressive spending on artificial intelligence infrastructure, along with AI-related acquisitions and hiring. Technology companies across Silicon Valley have been racing to build new data centers and computing systems to power AI products, a shift that has significantly increased operating costs.
A Meta spokesperson described the report as speculative and said discussions referenced in the coverage involved theoretical approaches rather than confirmed plans.
If the reductions occur at the scale reported, they would represent one of the largest workforce cuts in Meta’s history. The company last announced sweeping layoffs in November 2022, when it eliminated about 11,000 jobs. Another round followed in March 2023, when roughly 10,000 positions were cut as part of what executives called a broader restructuring effort.
The possible move comes as layoffs have continued across the technology sector. Companies, including Block and other major firms, have recently reduced staff while emphasizing the growing role of artificial intelligence in automating tasks and reshaping workplace needs.
Some analysts and industry observers, however, have questioned whether all recent layoffs are directly tied to AI adoption. Critics have suggested that companies may also be responding to other pressures, such as slower growth, shifting business strategies or over-hiring during the technology boom that accompanied the COVID-19 pandemic.
Meta has been at the center of the tech industry’s shift toward artificial intelligence and immersive digital platforms. The company traces its roots to Facebook, which was founded in 2004 by Mark Zuckerberg and fellow Harvard University students as a social networking site. Facebook quickly grew into one of the world’s largest online platforms, connecting billions of users globally.
In 2021 the company rebranded as Meta Platforms to reflect its broader focus on building the “metaverse,” a network of immersive digital environments combining virtual and augmented reality. Since then, Meta has expanded its investment in AI tools, including systems designed to improve advertising, automate content moderation and power new consumer features across its apps.
The company’s platforms — including Facebook, Instagram and WhatsApp — collectively serve billions of users and remain central to the global social media landscape.
Source: Reuters