Meta is preparing what would be the largest round of job cuts in its history, with layoffs potentially affecting 20% or more of its workforce, Reuters reported on 14 March, citing three people familiar with the matter.
At Meta's last reported headcount of approximately 75,000 employees, a 20% reduction would eliminate roughly 15,000 roles. J.P. Morgan estimated the cuts could save the company more than $6 billion, though analysts cautioned that saving may not be material relative to the scale of Meta's AI spending commitments.
According to The Guardian, which cited the Reuters sourcing, the plans reflect Meta's effort to offset the cost of ambitious AI infrastructure bets while positioning the company for a leaner operating model as AI tools begin to substitute for human labour. No timeline has been set and the final magnitude of cuts has not been fixed, the sources said.
Meta shares rose nearly 3% on the news, according to CNBC, suggesting investors view the restructuring as a signal of capital discipline rather than strategic distress. The stock had already come under pressure from investor concerns about the pace of AI-related capital expenditure.
Mark Zuckerberg has made AI the central pillar of Meta's medium-term strategy, directing substantial resources toward model development, data centre build-out, and AI-integrated products across Facebook, Instagram, and WhatsApp. The company has not publicly commented on the reported layoff plans.
