Meta Plans 20% Workforce Cut as AI Infrastructure Spend Hits $115–135 Billion

METAMETA

Meta directed advertising and wearables staff to work remotely ahead of anticipated cuts that could eliminate up to 20% of its 79,000 workforce (roughly 15,000 roles), marking its deepest reduction since 2022. The company plans to boost AI infrastructure spending to $115–135 billion this year, double last year’s commitment.

1. Layoff Notification and Remote Work Directive

Meta instructed employees in its advertising and wearables units to work from home pending details on mass job cuts. The move signals imminent workforce reductions and aims to manage communications ahead of official announcements.

2. Scale of Cuts and Historical Comparison

Up to 20% of Meta’s 79,000-strong workforce could be eliminated, amounting to approximately 15,000 roles. This would surpass the 11,000 positions trimmed in late 2022, marking the steepest downsizing in the company’s history.

3. Accelerated AI Infrastructure Investment

Meta plans to allocate between $115 billion and $135 billion toward AI infrastructure in 2026, doubling its previous year’s spending. CEO Mark Zuckerberg has identified AI development as a strategic priority for the company’s growth trajectory.

4. Prior Reality Labs Reductions

Earlier this year, Meta reduced headcount in its Reality Labs division by 10%–15%, reflecting a broader shift of resources toward AI-driven initiatives. The wearables segment continues to receive targeted funding despite recent cutbacks.

Sources

FF