Meta reportedly plans to cut up to 20 percent of its workforce as $600 billion AI bet drives need to offset costs

AI could trigger massive layoffs at Meta, but not how you'd expect. The company's main goal is offsetting soaring AI infrastructure costs, Reuters reports, while also "preparing" for efficiency gains from AI-assisted work. Managers are reportedly planning to cut up to 20 percent of the workforce, roughly 16,000 of nearly 79,000 employees. No date or final number is set. Meta spokesperson Andy Stone dismissed the report as "speculative reporting about theoretical approaches."

CEO Mark Zuckerberg is betting big on generative AI: $600 billion for AI technology, infrastructure, and workforce expansion through 2028, aggressive poaching of AI researchers, and acquisitions like Chinese startup Manus. In January, he said projects that once required large teams can now be handled by individuals.

Amazon and Block have made similar cuts recently, reportedly tied to AI. Amazon is already tightening guardrails on AI-generated code after too many errors slipped through, and while Block's mass layoffs may be partly AI-related, they're almost certainly not driven by AI alone.