Meta preparing to lay off 20% of total workforce:Reports cite AI as the main reason

Facebook and Instagram’s parent company Meta is once again preparing for large-scale layoffs. According to Reuters’ report, the company may show the exit door to 20% of employees from its global workforce. Meta had approximately 79,000 employees as of December 31, 2025, which means more than 15,000 people could lose their jobs. The company is taking this step to manage the billions of dollars being spent on Artificial Intelligence (AI) and data center costs. However, Meta spokesperson Andy Stone has denied any layoffs for now, calling these reports ‘fictional’. Layoff plan to compensate for AI investment
According to reports, Meta has made heavy investments to bring new talent to its ‘Superintelligence Labs’ (MSL). The company recently acquired Alexander Wang’s startup ‘Scale AI’ for $14.5 billion (approximately ₹1.21 lakh crore). Additionally, Meta has set a target to spend $600 billion (approximately ₹50 lakh crore) on AI infrastructure by 2028. To compensate for this huge expense, the company is considering reducing its workforce. Zuckerberg says – No need for large teams for big tasks now
Mark Zuckerberg had already indicated that AI has made productivity easier. He said in January this year that projects which were previously completed by large teams can now be completed by a single talented individual with the help of AI. Could be Meta’s biggest layoff to date
If the company lays off 20% of employees, this would be Meta’s largest layoff in history. Previously in November 2022, the company had laid off 11,000 people. Just four months later in March 2023, another 10,000 employees were let go. Company falling behind in AI race, delay in new model
This news comes when reports are claiming that Meta is falling behind in the AI race. Meta’s upcoming text-based model ‘Avocado’ has been delayed due to failing internal tests. This is the first model created by Meta Superintelligence Lab. To compensate for this, the company is preparing to acquire Chinese AI startup ‘Manus’ for 2 billion dollars. Additionally, it is also betting on AI platforms like ‘Moltbook’. Companies like Amazon and Microsoft have also laid off staff
Not just Meta, many other tech giants have also made layoffs to increase AI spending. In January this year, Amazon laid off around 16,000 employees (1% workforce). SaaS giant Atlassian also let go of 1,600 people for AI expenditure. Companies like Microsoft, Accenture and TCS are also restructuring their workforce amid changes in AI.