Meta Is Reportedly Planning Mass Layoffs That Could Affect 20% of the Company - With 16,000 Jobs At Risk

"Meta is reportedly planning widespread layoffs that could impact at least 20% of the company, three sources familiar with the issue recently told Reuters. The move comes as Meta tries to offset expensive bets on AI and set itself up for more workplace efficiency brought on by the technology. The sources mentioned that Meta has not set a date for the layoffs."

"Meta predicts that its capital expenditures will soar to as much as $135 billion in 2026, almost double the $72 billion the company spent the previous year. The company has earmarked most of that money for AI infrastructure: new data centers, Nvidia Graphics Processing Units (GPUs) and custom chips."

"Payroll is one of Meta's highest recurring costs. Cutting about 20% of staff would meaningfully lower ongoing salary, benefits and stock-based compensation expenses, according to Newsday. Meta employed about 79,000 workers as of December 31, so a layoff of 20% would impact roughly 16,000 workers."

Meta is reportedly considering significant layoffs affecting up to 20% of its approximately 79,000-person workforce, potentially impacting around 16,000 employees. The cuts aim to offset surging costs from substantial AI infrastructure investments, including data centers, GPUs, and custom chips. Meta's capital expenditures are projected to reach $135 billion in 2026, nearly double the previous year's $72 billion spending. Senior executives have been informed to prepare for workforce reductions, though no official timeline or final numbers have been announced. Payroll represents one of Meta's largest recurring expenses, making staff reductions a key cost-control measure. This would represent the most significant layoff round since late 2022 and early 2023 restructuring that eliminated over 21,000 positions.

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