Meta reportedly cutting 20% of staff amid AI investment

Facebook and Instagram’s parent company, Meta, is reportedly preparing to axe up to 20 per cent of its workforce as it continues to pour billions into AI.

As first reported by Reuters, Meta is looking to cut around a fifth of its workforce, equating to roughly 16,000 people, in an effort to counteract the expenses related to its AI investments, while reshaping how its business operates.

A trio of sources close to the matter told Reuters that while the timing and final scale of the terminations are yet to be determined, internal planning is currently underway.

Top executives have reportedly told other senior leaders at Meta to begin planning how to scale back their operations, according to two of the sources.

While Meta’s stock rose 3 per cent following the news of the possible terminations, as it had with previous waves of terminations, Meta is trying to dampen any belief that it intends to cull staff.

The company told Reuters that the discussions surrounding staff cuts were potential rather than final, while Andy Stone, spokesperson for Meta, said the article was “speculative reporting about theoretical approaches”.

If the wave of terminations does impact the 16,000 people mentioned above, this would mark the largest staff cull by the company since 2022–2023, when 21,000 staff were culled as part of the company’s “year of efficiency”.

Still, Meta’s spending on AI has continued to grow, having spent approximately US$72 billion on AI infrastructure in 2025 alone. For 2026, the company is expected to spend US$115 billion to US$135 billion, almost doubling its expenditure from the previous year.

The company is also reportedly looking to spend US$600 billion by 2028, all as part of CEO Mark Zuckerberg’s vision of achieving “superintelligence”, as in AI that surpasses the intelligence of human beings.

Investors in Meta have previously shown concern over the company’s AI spending and where the company would get the money to pay for it, particularly with discussions regarding the instability of the AI bubble.

However, Zuckerberg has maintained that the investments in AI would turn out profitable in the long run. Its shift towards AI has also seen it move away from previous ventures that failed, including the metaverse and virtual reality, an endeavour that Zuckerberg was highly interested in and that cost the company US$10 billion.

Earlier this year, the company axed 1,000 staff who were part of its virtual reality division, roughly 10 per cent of its Reality Labs division.