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    Home » Sections » Investment » Meta planning layoffs that could hit 20% of workforce

    Meta planning layoffs that could hit 20% of workforce

    Meta may cut one in five workers as it pours billions into AI infrastructure and talent, three sources have said.
    By Agency Staff16 March 2026
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    Meta planning layoffs that could hit 20% of workforce

    Meta Platforms is planning sweeping layoffs that could affect 20% or more of the company, three sources familiar with the matter have said, as Meta seeks to offset costly AI infrastructure bets and prepare for greater efficiency brought about by AI-assisted workers.

    No date has been set for the cuts and the magnitude has not been finalised, the people said.

    Top executives have recently signalled the plans to other senior leaders at Meta and told them to begin planning how to pare back, two of the people said. The sources spoke anonymously because they were not authorised to disclose the cuts.

    CEO Mark Zuckerberg has been pushing Meta to compete more forcefully in generative AI

    “This is speculative reporting about theoretical approaches,” Meta spokesman Andy Stone said in response to questions about the plan.

    If Meta settles on the 20% figure, the layoffs will be the company’s most significant since a restructuring in late 2022 and early 2023 that it dubbed the “year of efficiency”. It employed nearly 79 000 people as of 31 December, according to its latest filing.

    The company laid off 11 000 staffers in November 2022, or around 13% of its workforce at the time. Around four months later, it announced it was cutting another 10 000 jobs.

    Over the last year, CEO Mark Zuckerberg has been pushing Meta to compete more forcefully in generative AI. The company has offered huge pay packages, some worth hundreds of millions of dollars over four years, to court top AI researchers to a new superintelligence team.

    Acquisitions

    The company has said it plans to invest US$600-billion to build data centres by 2028. Earlier this week, it acquired Moltbook, a social networking platform built for AI agents. Meta is also spending at least $2-billion to buy Chinese AI start-up Manus.

    Zuckerberg has alluded to efficiency gains from the investments, saying in January he was starting to see “projects that used to require big teams now be accomplished by a single very talented person”.

    Read: The AI jobs reckoning is here

    Meta’s plans reflect a broader pattern among major US companies, particularly in tech, this year. Executives have pointed to recent improvements in AI systems as one reason for the changes.

    In January, Amazon confirmed it would cut some 16 000 jobs, amounting to nearly 10% of its workforce. Last month, the fintech company Block chopped nearly half of its staff, with CEO Jack Dorsey explicitly pointing to AI tools and their growing capability to help companies do more with smaller teams.

    Mark Zuckerberg
    Mark Zuckerberg

    Meta’s planned AI investments follow a series of setbacks with its Llama 4 models last year, including criticism that it provided misleading results on the benchmarks it used for early versions. It abandoned the release of the largest version of that model, called Behemoth.

    The superintelligence team has been working to reassert the company’s standing this year by building a new model called Avocado, but the performance of that model has also lagged expectations.  — Deepa Seetharaman, Jeff Horwitz and Katie Paul, (c) 2026 Reuters

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