Meta planning big layoffs while investing billions in AI

Meta could lay off a sizeable portion of its employees as the company invests more in artificial intelligence. It is reported that the company is examining its internal structure in order to make it more efficient. The potential layoffs are also associated with the increased expenditures of Meta on AI technology, data centers, and highly sophisticated computing systems. Also Read: Mark Zuckerberg’s AI comment raises fresh questions about jobs at Meta: Here’s what he said

Meta Planning to Downsize the Company

Reportedly,  Meta will be able to reduce approximately 20 percent of its staff. The company is yet to confirm the final number. Top executives are reportedly requested to look through their staff and develop strategies in case of downsizing. By the end of last year, Meta employed approximately 79,000 employees. In case the cuts are up to the reported level, thousands of employees might be affected. Such layoffs would be one of the biggest workforce cuts in the company over the last few years. Also Read: Meta Layoffs: 600 Employees Affected As Focus Shifts To New AI Lab

Earlier Layoffs

Meta has already performed significant layoffs in the past. In November 2022, the company reduced approximately 11000 jobs. This was approximately 13 percent of its workforce at the time. Several months later the company declared additional layoffs. That round affected approximately 10,000 more employees. Meta referred to the year as its year of efficiency as it attempted to manage costs and restructure the organization. Also Read: Tech Layoffs 2025: Intel To Cut Over 500 Jobs, Affecting 20% Global Workforce

Artificial Intelligence is Taking the Center Stage at Meta

Meta CEO Mark Zuckerberg has been driving the company to invest in artificial intelligence. The company is in desire to compete with other technology companies involved in the development of advanced AI systems. To ensure that AI development teams are strong, Meta has been recruiting AI researchers and engineers. It is also reported that the company has been paying very high remuneration to recruit the best AI talent to work with its new superintelligence unit.

Meta Spending on AI Infrastructure

Meta is also making more investment in infrastructure required to develop AI. The company has stated that it will spend approximately 600 billion dollars on the construction of data centers by 2028. Such facilities will be used to support deep AI and high-powered computing systems. Another way that Meta has been growing is through acquisitions. It has been reported that the company recently bought a social networking platform with the focus on AI agents and intends to purchase an AI startup called Manus.

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AI Changing Workforce Needs

AI tools are getting more sophisticated and effective. Most businesses are convinced that the high-tech software is in a position to manage jobs which previously demanded massive teams. According to some executives, AI systems have the capability to be used to complete projects that previously required a large number of employees. The trend can be noticed in the technology industry. Firms are putting more money in AI and are attempting to have smaller and more lean teams.