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3h ago

Meta Weighs Cuts of Up to 20% in Internal Planning, Reports Say

Reports say leaders are drafting scenarios to help finance a roughly $600 billion AI data-center buildout through 2028.

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People pose for a photo in front of a sign of Meta, the new name for the company formerly known as Facebook, at its headquarters in Menlo Park, California, U.S. October 28, 2021. REUTERS/Nathan Frandino/File Photo

Overview

  • Reuters reports that top executives have asked senior leaders to prepare headcount reduction plans that could reach about 20%, with no date or final scope set.
  • Meta spokesperson Andy Stone described the coverage as speculative and said discussions reflect theoretical approaches rather than settled decisions.
  • A 20% reduction would translate to roughly 16,000 roles out of about 79,000 employees and would be the company’s largest cut since 2022–23.
  • The internal rationale cited by sources ties potential cuts to rising AI infrastructure spending, aggressive recruiting packages for top researchers, and recent deals including Moltbook and a reported $2 billion purchase of Manus.
  • Meta’s AI push has faced technical setbacks, including issues with Llama 4 and the shelved Behemoth variant, and reports that the newer Avocado model has underperformed and been delayed.