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Meta Weighs 20% Workforce Reduction Tied to AI Investment Push

Executives have asked leaders to draft scenarios to offset data‑center costs, with the company calling the reports speculative.

Overview

  • Three Reuters sources say senior leaders were told to prepare plans for possible layoffs that could reach roughly one‑fifth of the company.
  • No date or final scope has been set, and Meta spokesperson Andy Stone described the coverage as speculative reporting about theoretical approaches.
  • Meta reported nearly 79,000 employees at year‑end 2025; a 20% plan would imply about 16,000 roles, alongside a stated $600 billion data‑center build through 2028.
  • If carried out at that scale, the reduction would be the largest since Meta’s 2022–2023 “year of efficiency” cuts that eliminated about 21,000 jobs.
  • Context for the planning includes internal AI model setbacks such as Llama 4 Behemoth’s shelving and delays to the Avocado model, with one Business Insider source saying cuts could begin in about a month.