Report: Meta Planning to Lay Off 16,000 Employees In AI-Driven Move to Cut Costs

"Meta, the parent company of Facebook, WhatsApp, and Instagram, is planing sweeping layoffs, possibly as soon as this week, with a reported plan to cut around 20% of its staff. The layoffs were first reported by Reuters on Friday, and the intention of them is reportedly to offset the massive costs of Meta's investments in AI."

"With a reported headcount of 79,000 as of December, Meta's layoff will be much more impactful in terms of the tech job market and potentially the local economy, than Block's. A downsizing of 20% would mean this layoff would impact almost 16,000 employees."

"With the stock price jump today, it is yet another example of the market rewarding companies for slashing jobs in the name of AI, so we can expect more of this kind of news in the coming months."

Meta is preparing sweeping layoffs affecting roughly 20% of its workforce, potentially impacting nearly 16,000 employees. The cuts aim to offset substantial costs from CEO Mark Zuckerberg's heavy AI investments over the past year. Reuters first reported the layoffs, which could occur imminently. Meta's stock rose over 2% following the announcement, reflecting market approval of job cuts tied to AI strategy. This represents a significant shift from Meta's February 2025 layoffs affecting 3,600 employees. The company's headcount had grown back to approximately 79,000 after previous major reductions between November 2022 and March 2023, when 21,000 employees were dismissed following pandemic-era expansion.

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