Meta Plans Major Workforce Reduction Amid Rising AI Costs
Meta is reportedly preparing to reduce its workforce by up to 20%, representing one of the largest layoffs in the company’s history. The cuts follow significant investments in artificial intelligence and continued financial pressure on divisions such as Reality Labs.
Meta is reportedly considering a reduction of up to 20% of its workforce, according to a report from Reuters that cites company sources. If confirmed, the move would be one of the largest layoffs in the social media giant's history.
As of 31 December 2025, Meta employed nearly 79,000 people. The company generated almost $60 billion in revenue in the fourth quarter of 2025, and more than $200 billion for the year overall.
The timeline and scope of the layoffs have not yet been finalized. However, according to Reuters, Meta’s senior leaders have been instructed to begin preparing for substantial workforce reductions. A Meta spokesperson described the report as "speculative reporting about theoretical approaches."
The company has already executed several rounds of layoffs in recent years. Earlier in 2026, approximately 1,000 employees from the Reality Labs division were let go. In early 2022, a smaller round saw about five percent of Meta’s staff depart. Reality Labs, responsible for Meta’s virtual reality and metaverse development, continues to face profitability challenges despite significant investments and has often been a focus for cost-cutting.
Alongside job reductions, Meta has maintained an aggressive pace of investment in artificial intelligence. The company has acquired AI startups including Moltbook, a social network focused on AI agents, and Manus, which develops AI agents for automating tasks. AI agents are digital systems capable of performing complex actions with minimal human input. Meta also launched new AI tools this month to detect celebrity impersonators on its platforms, in a bid to improve safety and user trust.
As Meta balances expansion in AI with the need to streamline operations, the company faces mounting costs from both product development and market competition. While the company remains profitable, the significant scale of potential job cuts highlights the pressure to manage expenditures in the face of ongoing technological transformation.
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