Shares of Meta Platforms surged nearly 3% after reports indicated that the company is considering laying off 20% or more of its global workforce, as part of a broader strategy to manage rising investments in artificial intelligence (AI).
Shares of Meta Platforms surged nearly 3% after reports indicated that the company is considering laying off 20% or more of its global workforce, as part of a broader strategy to manage rising investments in artificial intelligence (AI).
According to a Reuters report, the potential layoffs could impact over 15,000 employees, making it one of the largest job cuts in the company’s history. The move is seen as an effort to offset the massive costs associated with building AI infrastructure and competing with leading AI firms.
Meta has significantly increased its spending on AI in recent years, with projections suggesting capital expenditure could reach up to $135 billion in 2026, nearly double that of the previous year. This investment is aimed at expanding data centres, improving AI models, and strengthening its position in the global AI race.
If implemented, the layoffs would surpass the company’s earlier “year of efficiency” restructuring in 2022-23, during which around 21,000 jobs were cut. Analysts estimate that a 20% reduction in workforce could generate approximately $6 billion in cost savings and improve profitability.
Despite the market’s positive reaction, Meta has described the reports as “speculative”, stating that no final decision has been made regarding the scale or timing of the layoffs.
The development also reflects a wider trend across the tech industry, where companies are restructuring operations and reducing workforce sizes as AI increasingly reshapes productivity and business models.
