Meta Considers Cutting 20% of Workforce as AI Infrastructure Costs Soar

Meta Platforms is reportedly weighing layoffs that could affect up to 20 percent of its global workforce, a move that would impact more than 15,000 employees and represent the company's largest single round of job cuts in its history.

The potential layoffs are being driven by the enormous costs associated with Meta's aggressive push into artificial intelligence infrastructure. The company is projected to spend up to $135 billion on AI-related expenses in 2026 alone, with plans to invest $600 billion in data center construction by 2028.

What We Know So Far

According to multiple reports, top executives at Meta have shared preliminary plans with managers and instructed them to begin identifying areas where cuts could be made. Meta spokesperson Andy Stone characterized the reports as "speculative reporting about theoretical approaches," but did not deny that workforce reductions are being considered.

The company had 78,865 employees as of December 31, 2025. A 20 percent reduction would be the largest single cut since the company's restructuring in late 2022 and early 2023, when Meta eliminated approximately 21,000 positions across two rounds of layoffs.

AI-Washing or Genuine Transformation?

CEO Mark Zuckerberg has argued that advances in AI are enabling smaller teams to accomplish what previously required much larger groups. However, some industry observers, including OpenAI's Sam Altman, have suggested that many tech companies are using AI as cover for layoffs driven by other factors, including pandemic-era over-hiring.

Despite the human cost, investors appear enthusiastic about the potential restructuring. Meta's stock climbed nearly 3 percent following news of the planned cuts, reflecting Wall Street's appetite for cost discipline in the tech sector.

A Broader Industry Trend

Meta is far from alone in trimming headcount while boosting AI spending. Amazon recently confirmed plans to cut 16,000 corporate positions, while Block laid off 4,000 employees in February. According to Challenger, Gray & Christmas, AI has been cited in over 12,000 job cuts in the United States so far in 2026.