Tech titan Meta is reportedly planning a massive reduction in its headcount to offset the hundreds of billions of dollars in projected AI investments.
Three sources familiar with the matter say Meta is looking at making sweeping layoffs that could impact 20% of its 79,000-strong workforce or 15,800 employees, Reuters reports.
The sources say the firm is banking on AI to drive greater efficiency as Meta plans to spend $600 billion on data center construction by 2028. Last month, the company announced its AI CapEx guidance to the tune of $122 billion.
According to the sources, the date and the number of affected workers have not been finalized. Two of the people say Meta executives have already hinted at the plans to senior leadership, who subsequently gave instructions to prepare for the headcount reduction.
Meta spokesperson Andy Stone says the report has no basis.
“This is speculative reporting about theoretical approaches.”
In November 2022, Meta slashed 11,000 workers before letting go of another 10,000 employees a few months later.
Earlier this year, Amazon cut 16,000 jobs after previously reducing its headcount by 30,000 in October of last year in an effort to trim expenses and streamline operations. And in February, Jack Dorsey announced that it was laying off about 40% of the staff at Block to build leaner teams that rely on intelligence tools.
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