People with knowledge of the matter disclosed that while no final decision has been announced, senior executives have already briefed top managers on the possibility of widespread layoffs and have instructed departments to begin internal planning. The discussions are ongoing, and the scale and timing of the cuts remain subject to change, with Meta yet to issue an official response.
Brandspur Brand News understands that if the proposed reductions move forward at the projected scale, this would mark Meta’s largest workforce contraction since its 2022–2023 restructuring period, which the company described at the time as its “year of efficiency.” As of the end of December, Meta employed close to 79,000 people globally, based on its most recent regulatory filings.
The company previously laid off about 11,000 employees in November 2022, followed by an additional 10,000 job cuts in early 2023, as it sought to streamline operations after years of aggressive expansion. The latest discussions suggest a renewed push to recalibrate staffing levels in response to changing technological demands and rising capital expenditure on AI development.
Chief Executive Officer Mark Zuckerberg has, over the past year, prioritised Meta’s competitiveness in generative artificial intelligence, approving substantial compensation packages to attract leading AI researchers and engineers. The company has also outlined plans to invest up to US$600 billion in data centre infrastructure by 2028 to support its long-term AI ambitions.
Meta’s recent acquisition activity underscores this strategy, including the purchase of Moltbook, a social networking platform designed for AI agents, and an agreement to acquire Chinese AI startup Manus in a deal reportedly valued at over US$2 billion. These moves reflect the company’s belief that AI will play a central role in reshaping productivity and product development.
Zuckerberg has publicly suggested that advancements in AI are already reducing the need for large teams, noting that projects once requiring extensive manpower can now be handled by a small number of highly skilled individuals. This thinking aligns with broader trends across the US technology sector, where firms are reassessing workforce needs as AI tools become more capable.
Other major companies have taken similar steps. Amazon recently confirmed plans to cut around 16,000 jobs, while fintech firm Block reduced nearly half of its workforce, with management citing growing reliance on AI systems as a contributing factor.
Despite heavy investment, Meta’s AI journey has not been without challenges. The company faced criticism last year over performance issues and benchmarking concerns related to its Llama 4 models, ultimately shelving the release of its largest version, known as Behemoth. Efforts to regain momentum through a new model, Avocado, have also reportedly fallen short of internal expectations so far.
As Meta balances ambitious AI spending with pressure to maintain profitability, the potential layoffs highlight the difficult trade-offs confronting global technology firms navigating rapid automation, rising costs, and shifting workforce dynamics.
