Meta May Cut 20% Of Workforce As Mark Zuckerberg Doubles Down On Costly AI Push And Data Center Spending: Report

Meta Platforms, Inc. (NASDAQ:META) is reportedly weighing layoffs that could affect as much as one-fifth of its workforce as CEO Mark Zuckerberg ramps up spending on artificial intelligence and data center infrastructure. A timeline for the potential layoffs has not been finalized, and the final scale of the cuts remains undecided, Reuters reported on Friday, citing people familiar with the matter. Meta did not immediately respond to Benzinga's request for comments. Executives have reportedly begun informing senior leaders to start preparing plans for possible reductions. In a statement to Reuters, a Meta spokesperson described the report as "speculative reporting about theoretical approaches." If implemented, a reduction of that magnitude would mark Meta's largest workforce cut since its 2022–2023 restructuring, when the company eliminated more than 21,000 jobs during what Zuckerberg called the "year of efficiency." Meta had about 79,000 employees as of Dec. 31, according to its latest filings. AI Spending Driving Cost Cuts The potential layoffs come as Meta sharply increases investment in AI. The company plans to spend about $600 billion on data center infrastructure by 2028 and has been offering lucrative compensation packages to recruit leading AI researchers for a new superintelligence team. Meta's move mirrors a wider trend among major U.S. companies. In January, Amazon.com, Inc. (NASDAQ:AMZN) confirmed plans to cut about 16,000 jobs, roughly 10% of its workforce. Last month, fintech firm Block Inc. (NYSE:XYZ) eliminated nearly half of its staff, with CEO Jack Dorsey pointing to AI tools and their growing ability to help companies operate with smaller teams. Price Action: Shares of Meta closed Friday down 3.83% at $613.71. It slipped another 0.45% to $610.96 in after-hours trading, according to Benzinga Pro. Benzinga Edge Stock Rankings indicate that Meta is showing weakness across the short, medium, and long-term trends, although the company's Quality score ranks in the 89th percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock