Meta is reportedly considering major layoffs that could affect 20% or more of its workforce. These potential cuts would impact a company that employed nearly 79,000 people as of the end of last year.
According to the report, these layoffs could help the parent company of Facebook offset its aggressive spending on artificial intelligence. This spending includes massive investments in AI infrastructure, as well as costs related to AI acquisitions and hiring efforts.
In response to the report, a Meta spokesperson stated, “This is speculative reporting about theoretical approaches.”
This news arrives amid a wave of layoffs across the tech industry. Many companies have announced workforce reductions, stating they are necessary as AI automates more tasks. However, some industry observers and executives have suggested that many of these cuts are examples of “AI-washing.” This term describes a practice where executives use AI as a convenient cover for other issues, such as correcting for over-hiring during the pandemic boom.
The last time Meta enacted layoffs on this scale was in November 2022, when it cut 11,000 jobs. This was followed by an additional 10,000 layoffs in March of 2023.