Meta is preparing for potential layoffs while simultaneously investing billions in artificial intelligence, according to two senior employees familiar with the matter.
Shifting Priorities at Meta
Reuters first reported on Friday that Meta is considering layoffs impacting up to 20% of its workforce. As of the end of 2025, Meta employed nearly 79,000 people, meaning a 20% reduction could eliminate roughly 16,000 jobs. This would be Meta’s largest workforce reduction since cuts of 11,000 jobs in 2022 and another 10,000 in 2023. In January, 1,500 employees in its Reality Labs division were also laid off.
Managers have been asked to prepare cost-cutting plans, though the scope and timing of any potential cuts remain unclear. A Meta spokesperson described the reports as “speculative reporting about theoretical approaches.”
Industry-Wide Trend
Potential layoffs at Meta align with a broader trend in the technology industry. Companies like Atlassian have announced plans to cut roughly 1,600 employees, or 10% of its staff, citing AI and a push for efficiency. Block has also reduced its workforce, with CEO Jack Dorsey stating that latest AI tools allow companies to operate with smaller teams. This suggests a shift in Silicon Valley, where companies are betting they can innovate faster and more cheaply with fewer employees.
Meta is also investing heavily in AI talent, offering pay packages worth hundreds of millions of dollars over four years to attract top AI researchers to its new superintelligence team. The company is “elevating individual contributors and flattening teams,” according to CEO Mark Zuckerberg, and has created a new AI engineering organization with a high manager-to-employee ratio of up to 1:50.
Meta’s push into AI follows challenges with its in-house model efforts. Early versions of its Llama 4 models faced criticism for misleading benchmark results, and the largest version, called Behemoth, was shelved. The company’s Superintelligence team is currently working on new models, Avocado and Mango, which have reportedly been delayed until May.
Frequently Asked Questions
What percentage of Meta’s workforce could be affected by layoffs?
Reuters reported that up to 20% of Meta employees could be let go, which would equate to roughly 16,000 jobs.
Has Meta conducted layoffs recently?
Yes, Meta laid off 1,500 people in its Reality Labs division in January.
What is driving these potential layoffs?
The potential layoffs are linked to Meta’s significant investments in artificial intelligence and a broader industry trend of companies seeking efficiency gains through AI.
As companies increasingly rely on AI, how will the role of human employees evolve within the tech industry?
