Meta planning layoffs that could affect over 20% of workforce Meta Platforms is planning extensive layoffs that could impact 20% or more of its workforce, according to a Reuters exclusive citing three people familiar with the matter. The cuts, which could affect roughly 16,000 of the company's approximately 78,000 employees, would represent the most aggressive workforce reduction since the company eliminated more than 21,000 jobs during its 2022-2023 "year of efficiency" restructuring. The planned layoffs come as CEO Mark Zuckerberg continues to funnel massive sums into artificial intelligence infrastructure, with Meta projecting capital expenditure of $115 billion to $135 billion for 2026 alone. Industry-wide AI spending is expected to reach $630 billion this year. A Pattern of Cuts in the AI Era The reported plans escalate what has already been a turbulent period for Meta's workforce. In January, the company cut 1,500 jobs from its Reality Labs division, about 10% of that unit, as it shifted investment away from virtual reality and the metaverse toward AI-powered wearables and smart glasses. In October 2025, Meta eliminated 600 positions from its Superintelligence Labs AI division. And in early 2025, the company cut roughly 5% of its staff, or about 3,600 workers, in performance-based Meta also reduced annual stock awards for most employees by approximately 5% earlier this year, following a 10% cut the previous year, redirecting savings toward its AI ambitions. The Financial Times first reported those compensation reductions. Zuckerberg's AI-First Vision Zuckerberg has been signaling that AI would allow Meta to operate with fewer people. During the company's fourth-quarter earnings call, he told investors, "This is going to be a big year for delivering personal superintelligence," and emphasized that Meta would "continue to invest very significantly in infrastructure to train leading models". He has also noted that "projects that once required large teams" are "now being completed by a single, exceptionally skilled individual," according to the The company's spending priorities reflect this shift. Meta has committed to building gigawatt-scale data centers, including a $50 billion facility in rural Louisiana, and has signed deals for 6 gigawatts of nuclear power. To oversee government and investor partnerships for these ventures, Meta recently appointed Dina Powell McCormick, a former advisor to President Donald Trump, as president and vice chairman. An Industry Under Pressure Meta's planned cuts come amid a broader wave of AI-driven layoffs across corporate America. Goldman Sachs has estimated that AI was responsible for 5,000 to 10,000 monthly net job losses in the most exposed U.S. industries last year. Block recently announced it would slash roughly 40% of its workforce, with CEO Jack Dorsey stating bluntly that "intelligence tools have transformed the dynamics of constructing and managing a business". Amazon eliminated 16,000 corporate positions in late January Meta said in February that it would not repeat last year's company-wide performance-based purge. Whether these newly reported cuts represent an expansion of targeted restructuring or a broader strategic repositioning remains to be seen.
