Meta Platforms is considering a round of layoffs that could affect more than 20% of its workforce, according to a report from Reuters. The potential cuts would represent one of the company’s largest workforce reductions since its major layoffs in 2022 and 2023.
The possible layoffs come as Meta continues to increase spending on artificial intelligence infrastructure and related investments.
Layoffs Linked To Rising AI Spending
According to the report, the proposed job cuts could help the company offset the costs associated with expanding its artificial intelligence capabilities. These expenses include large investments in computing infrastructure as well as AI-focused acquisitions and hiring.
Meta reported employing nearly 79,000 people as of December 31 in a recent regulatory filing.
A company spokesperson said the report describes speculative scenarios rather than confirmed plans.
“This is speculative reporting about theoretical approaches,” the spokesperson said in a statement.
Tech Sector Facing Wider Job Reductions
The report emerges as several technology companies have announced workforce reductions while increasing spending on artificial intelligence.
Block is among the firms that have recently announced layoffs. Companies have often said the changes are necessary as AI systems automate more tasks within their organizations.
However, some commentators have questioned whether all layoffs attributed to AI are directly related to the technology.
Debate Over ‘AI-Washing’ Claims
Some analysts and industry observers have suggested that companies may be linking job cuts to artificial intelligence even when other factors are involved.
The term “AI-washing” has been used to describe situations where companies frame layoffs as AI-driven even though the underlying reasons may include broader business adjustments or previous over-hiring.
Sam Altman has previously referenced this phenomenon in discussions about workforce reductions in the technology industry.
Some observers say companies that rapidly expanded hiring during the Covid-19 pandemic are now adjusting their workforce levels.
Previous Large-Scale Layoffs At Meta
Meta previously carried out major layoffs in recent years.
In November 2022, the company eliminated approximately 11,000 jobs. A second round followed in March 2023, when the company cut another 10,000 positions.
Those reductions were part of a broader restructuring effort aimed at reducing costs and reorganizing operations.
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