Evercore ISI senior managing director Mark Mahaney explains his stock pick for ‘Varney & Co.’ to.
Meta is reportedly considering layoffs that could affect at least 20% of its workforce as the tech giant looks to offset rising artificial intelligence costs.
The cuts come as the tech company aims to offset the costs of its artificial intelligence infrastructure and prepare for greater efficiencies brought about by AI-enabled workers, three sources familiar with the matter told Reuters.
The outlet added that the timing and size of the potential layoffs have not yet been finalized.
META REDUCES OVER 1,000 JOBS IN MAJOR METAVERSE RETREAT
Meta CEO Mark Zuckerberg arrives at the Los Angeles Superior Court at the United States Court House on February 18, 2026 in Los Angeles, California. (Jill Connelly/Getty Images/Getty Images)
According to Reuters, Meta executives recently shared plans for the proposed layoffs with other senior leaders at the company.
If the company were to cut 20% of its employees, the layoffs would amount to Meta’s largest restructuring since 2022 and early 2023, the outlet said.
Meta laid off 11,000 employees in November 2022 – about 13% of its workforce at the time, Reuters reported.
Months later, the company cut another 10,000 jobs.
JUDGE BLOCKS META FROM INTRODUCING ‘EXCESSIVE’ CLAIMS IN SOCIAL MEDIA TRIAL
Meta is reportedly considering layoffs that could affect up to 20% of its workforce as the company invests heavily in its artificial intelligence infrastructure. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
Meta employed nearly 79,000 people as of December 31, according to its latest filing.
Other major companies, including Amazon, have recently announced large-scale layoffs related to AI developments.
In January, Amazon cut about 16,000 jobs and indicated at the time that more jobs could follow.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Meta is considering significant staff cuts as the tech giant ramps up spending on artificial intelligence infrastructure. (Getty Images / Getty Images)
The company previously announced an initial round of cuts that would result in a total of about 14,000 white-collar layoffs in October, bringing corporate reductions to about 30,000 jobs.
In making the cuts, which represented nearly 10% of its white-collar workforce, Amazon cited efficiency gains from artificial intelligence and broader cultural changes.
