Meta Platforms is reportedly looking at a major restructuring that could cut its workforce by as much as 20%. This change might impact around 15,800 employees out of its roughly 79,000 staff. If it happens, this would be one of the largest layoffs in the company’s history. It comes as the tech giant significantly boosts its investment in artificial intelligence infrastructure and research.
While the company has not confirmed these layoffs, spokesperson Andy Stone referred to the reports as “speculative reporting about theoretical approaches.” Nevertheless, the scale of Meta’s ongoing AI spending suggests the company is preparing for a big shift in operations.
AI Investments Driving Strategic Shift
Meta plans to spend up to $600 billion on AI data center infrastructure by 2028. This move signals one of the largest capital investment plans in the technology sector. The company is building large-scale computing facilities meant to support next-generation AI systems. This includes generative AI models and automation tools.
In addition to its infrastructure spending, Meta is pursuing acquisitions to boost its AI ecosystem. The company recently bought Moltbook, a social networking platform for AI agents, and is reportedly in talks for a $2 billion acquisition of the Chinese AI startup Manus.
To attract top AI talent, Meta has also been offering multi-year compensation packages worth hundreds of millions to leading researchers. CEO Mark Zuckerberg has indicated that AI could greatly reduce the need for large teams. Earlier this year, he noted that projects once requiring big teams might now be handled by just one highly skilled individual.
Workforce Reductions Echo Earlier Layoffs
If it goes ahead, the potential layoffs would surpass Meta’s previous workforce reductions during 2022 and 2023.
In November 2022, the company cut 11,000 jobs, which was about 13% of its workforce at that time. Just four months later, it eliminated another 10,000 positions as part of what Zuckerberg called Meta’s “year of efficiency.”
These cuts were mainly seen as a correction following rapid hiring during the pandemic. However, the current restructuring seems more closely related to the company’s long-term strategy around AI development and automation.
Challenges With Meta’s AI Models
Meta’s heavy spending on AI comes amid mixed results from its recent AI projects.
The company’s Llama 4 models received criticism from researchers and developers, who found the benchmarks for earlier versions to be misleading. Meta also canceled its largest planned model, Behemoth, which was supposed to launch last summer.
The company’s superintelligence research group has since shifted its focus to a new model called Avocado internally. However, reports indicate that this project has not yet met internal performance expectations.
Despite these challenges, Meta continues to invest heavily in building advanced AI systems that could enhance its social platforms, advertising tools, and future digital services.
Industry-Wide Shift Toward AI Efficiency
Meta’s strategy reflects a wider trend in the technology sector, where companies are cutting costs while increasing their spending on artificial intelligence.
Earlier this year, Amazon confirmed that it would cut about 16,000 jobs, or close to 10% of its workforce, as part of its restructuring efforts.
Meanwhile, Block Inc., a financial technology company led by Jack Dorsey, recently reduced its workforce by nearly half. Dorsey openly mentioned AI tools as a key factor allowing companies to operate with fewer employees.
Across the industry, companies are increasingly investing in AI systems capable of performing tasks that used to require large teams of engineers, analysts, and operational staff.
A High-Stakes AI Bet
For Meta, this strategy is a significant long-term investment: build extensive AI infrastructure while streamlining human teams.
Whether this plan is successful will largely depend on the effectiveness of the AI technologies the company is developing. If these systems lead to meaningful productivity improvements, the investment could change how Meta develops products and services.
However, with some projects still faltering, the outcome of Meta’s AI-first strategy remains uncertain as the company navigates a fast-changing technology landscape.
