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Meta Reportedly Planning Massive Layoffs as AI Spending Surges
The tech giant is reportedly preparing to cut up to 20% of its workforce as it doubles down on AI development.
Mar. 16, 2026 at 8:23pm
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According to an exclusive Reuters report, Meta is planning to slash its workforce by as much as 20% through wide-reaching layoffs, as the company ramps up spending on AI projects and infrastructure. The cuts are reportedly meant to reduce costs associated with Meta's ambitious AI initiatives, including the development of its Avocado AI model and other next-generation technologies.
Why it matters
Meta's reported layoffs highlight the company's struggles to deliver on its AI-driven vision, despite pouring billions into the effort. The cuts also reflect the broader trend in Silicon Valley of major tech firms turning to AI to boost productivity and cut costs, even as they grapple with the challenges of developing advanced AI systems.
The details
According to the Reuters report, Meta has not set an exact timeline or headcount for the planned layoffs, but the company's top executives have asked their peers to begin preparing for the cuts. The layoffs are reportedly meant to align Meta's workforce with its increased reliance on AI to assist employees in their daily tasks, as well as to reduce the costs associated with building out AI infrastructure.
- Meta laid off 21,000 employees between 2022 and 2023.
- Earlier this year, Meta CEO Mark Zuckerberg told investors he saw "projects that used to require big teams now be accomplished by a single very talented person."
The players
Meta
The tech giant, formerly known as Facebook, is betting heavily on AI development as it seeks to compete in the ever-evolving AI landscape.
Mark Zuckerberg
The CEO of Meta, who has personally initiated a string of expensive hires and acquisitions during a tense AI talent war, including a $14.3 billion deal to poach Scale AI's co-founder and offering $100 million signing bonuses to OpenAI engineers.
What they’re saying
“Meta has been spending big to keep up with its AI ambitions, from hiring to data center construction. But all that cash hasn't led to many public wins, with recent reports saying it will delay the release of its new foundational model, named Avocado. Rumors of cost-cutting measures like layoffs are another sign Meta is struggling.”
— Katelyn Chedraoui, CNET AI expert
What’s next
If the reported layoffs come to pass, Meta would be the latest in a string of major tech companies, including Amazon, Block, and Atlassian, to announce significant job cuts as they seek to increase their reliance on AI tools.
The takeaway
Meta's reported plans to slash its workforce by up to 20% amid surging AI spending underscores the company's struggles to deliver on its ambitious AI vision, despite pouring billions into the effort. The cuts reflect the broader trend in Silicon Valley of major tech firms turning to AI to boost productivity and cut costs, even as they grapple with the challenges of developing advanced AI systems.
