Meta Plans Major Layoffs Amid $600bn AI Investment Push

Meta is reportedly planning significant layoffs that could affect around 20% of its workforce in an effort to offset costly investments in artificial intelligence infrastructure. Top executives at Meta have signaled the plans to senior leaders, although no date has been set for the cuts.

The layoffs would be the company's most significant since a restructuring in late 2022 and early 2023, during which it laid off 11,000 staff and announced another 10,000 job cuts. CEO Mark Zuckerberg has been focusing on generative AI and investing heavily in data centers, with plans to invest $600bn by 2028.

The company's planned AI investments come after setbacks with its Llama 4 models and the underperformance of its new model called Avocado, with executives emphasizing the role of AI tools in increasing efficiency across major US companies, particularly in the tech industry.