Meta Weighs Cutting 20% of 79,000 Staff as AI Costs Surge
Meta is evaluating cuts of 20%, which on a workforce of nearly 79,000 employees would be its largest since the 2022-23 reductions. The move follows rising AI infrastructure costs and plans to invest $600 billion in data centers through 2028, with senior leaders preparing headcount reduction proposals.
1. Potential 20% Headcount Reduction
Meta is reviewing plans to cut 20% of its nearly 79,000 employees, which would exceed the roughly 11,000 (13%) and subsequent 10,000 roles eliminated during its 2022-23 efficiency drive. Senior executives have asked leaders to prepare proposals, though no dates or final scope have been set.
2. AI Infrastructure Spending Surge
The company has accelerated spending on AI infrastructure and plans to invest $600 billion in data center expansion by 2028. Executives expect AI-assisted work to streamline operations but have signaled that some teams may shrink as automation increases efficiency.
3. Historical Layoff Context
In late 2022 and early 2023, Meta cut a combined 21,000 roles as part of its ‘year of efficiency’, realigning resources toward prioritizing generative AI development. Those reductions amounted to roughly one quarter of the workforce at the time.
4. Broader Industry Staffing Trends
Major US technology firms have cited improved AI systems when adjusting headcount, with peers eliminating tens of thousands of corporate roles this year. Meta’s potential reduction aligns with a wider shift toward AI-driven productivity gains.