Meta Prepares for Layoffs of 15,000 Employees: 20% of Total Workforce; AI Investments and Startup Acquisitions Cited as Reasons

Meta, the parent company of Facebook and Instagram, is once again preparing for large-scale layoffs. According to a Reuters report, the company could let go of 20% of its global workforce. As of December 31, 2025, Meta had approximately 79,000 employees; based on this figure, more than 15,000 people could lose their jobs.

The company is taking this step to manage its escalating multi-billion dollar spending on Artificial Intelligence (AI) and the rising costs associated with data centers. However, Meta spokesperson Andy Stone has currently denied any impending layoffs, labeling these reports as “speculative.”

Layoff Plan to Offset AI Investments

According to reports, Meta has invested heavily in recruiting new talent for its “Superintelligence Labs” (MSL). The company recently acquired Alexander Wang’s startup, “Scale AI,” for $14.5 billion (approximately ₹1.21 lakh crore).

Furthermore, Meta has set a target to spend $600 billion (approximately ₹50 lakh crore) on AI infrastructure by 2028. To offset these massive expenditures, the company is considering reducing its workforce.

Zuckerberg States: Large Teams No Longer Needed for Major Projects

Mark Zuckerberg had previously signaled that AI has streamlined productivity. Speaking in January of this year, he stated that projects which previously required large teams to complete can now be executed by a single talented individual with the assistance of AI. Meta Could Face Its Largest Layoffs to Date

If the company lays off 20% of its workforce, it would mark the largest round of layoffs in Meta’s history. Previously, in November 2022, the company laid off 11,000 employees. Just four months later, in March 2023, another 10,000 employees were let go.

Company Falling Behind in the AI ​​Race; New Model Delayed

This news comes amidst reports claiming that Meta is falling behind in the race for AI dominance. Meta’s upcoming text-based model, ‘Avocado,’ has been delayed after failing internal testing.

This is the first model developed by Meta’s Superintelligence Lab. To compensate for this setback, the company is reportedly preparing to acquire the Chinese AI startup ‘Manus’ for $2 billion. Additionally, it is placing bets on other AI platforms such as ‘Moltbook.’

Companies Like Amazon and Microsoft Have Also Laid Off Staff

It is not just Meta; several other tech giants have also conducted layoffs to free up capital for increased spending on AI. In January of this year alone, Amazon laid off approximately 16,000 employees (1% of its workforce). SaaS giant Atlassian also let go of 1,600 employees to fund its AI initiatives. Companies such as Microsoft, Accenture, and TCS are similarly restructuring their workforces amidst the ongoing shifts in the AI ​​landscape.