Meta denies rumors of sweeping layoffs to fund AI

"Three anonymous sources familiar with the matter told Reuters about the plans. No date has been set and the final scale has not been decided. Meta spokesman Andy Stone called it "speculative reporting about theoretical approaches." Roughly 16,000 of its nearly 79,000 employees could be out of a job if the claims are correct."

"If confirmed, this would be Meta's largest restructuring since the company's "year of efficiency" in late 2022 and early 2023, when it cut approximately 21,000 jobs in two rounds. During that time, several Big Tech companies opted to execute similar workforce cuts, including Google, which until January 2023 had not felt the need to slash jobs like its tech rivals."

"The new push for efficiency is directly linked to Meta's soaring AI spending. The company has budgeted up to 135 billion dollars for 2026 capital expenditures, nearly double the $72 billion spent in 2025, with a 600 billion dollar data center construction programme planned through 2028."

Meta is reportedly planning significant workforce reductions affecting approximately 16,000 employees, or 20% of its nearly 79,000-person workforce, according to three anonymous sources. The layoffs are driven by escalating AI infrastructure costs and a company-wide efficiency initiative. No final decisions on timing or scale have been confirmed, with Meta calling reports speculative. This would represent the company's largest restructuring since its 2022-2023 efficiency drive that eliminated 21,000 jobs. The planned cuts follow January's 10% reduction in the Reality Labs division. Meta's AI spending has surged dramatically, with $135 billion budgeted for 2026 capital expenditures and a $600 billion data center construction program planned through 2028.

Read at Techzine Global