Meta Plans Significant Layoffs Amid AI Investment Shift
Meta is preparing for substantial layoffs, potentially affecting over 20% of its workforce, as the company reallocates resources toward artificial intelligence initiatives.
Meta is reportedly planning significant layoffs that could impact more than 20% of its workforce, according to sources familiar with the matter. The exact timing and scale of the cuts have not been finalized, but top executives have instructed senior leaders to begin planning for reductions.
This move follows Meta's recent strategic shift from its metaverse focus to artificial intelligence (AI) development. In January 2026, the company laid off over 1,000 employees from its Reality Labs division, representing approximately 10% of that unit's staff.
Meta has been investing heavily in AI, including a $100 billion partnership with AMD to enhance its AI infrastructure. Additionally, the company acquired AI startup Manus for over $2 billion to bolster its AI capabilities.
CEO Mark Zuckerberg has emphasized the importance of AI in Meta's future, stating that the company is focusing on AI-driven products and services.
As of December 31, Meta employed nearly 79,000 people. If the planned layoffs proceed as reported, they would mark the company's most significant workforce reduction since its restructuring in late 2022 and early 2023, which was termed the "year of efficiency."