Meta is reportedly considering layoffs that could affect at least 20% of its workforce as the tech giant looks to offset rising artificial intelligence costs.
The layoffs come as the tech company aims to offset the cost of artificial intelligence infrastructure and prepare for greater efficiencies brought by artificial intelligence-assisted workers, three people familiar with the matter told Reuters.
The outlet added that the timing and size of potential layoffs have not yet been finalized.
When reached for comment, a Meta spokesperson told Fox Business: “This is a speculative report on a theoretical approach.”
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Meta executives recently shared the proposed layoffs with other senior leaders at the company, Reuters reported.
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The media said that if the company cuts 20% of its workforce, the layoffs will amount to Meta’s largest restructuring since 2022 and early 2023.
According to Reuters, Meta laid off 11,000 employees in November 2022, accounting for approximately 13% of its workforce at the time.
A few months later, the company cut another 10,000 jobs.
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Meta had nearly 79,000 employees as of Dec. 31, according to its latest filing.
Other major companies, including Amazon, have recently announced large layoffs related to AI development.
Amazon cut about 16,000 jobs in January and hinted at the time that further layoffs were possible.
The company previously announced a first round of layoffs totaling about 14,000 white-collar workers in October, bringing the number of layoffs at the company to about 30,000.
Amazon cited efficiency gains from artificial intelligence and broader cultural changes in the cuts, which account for nearly 10% of its white-collar workforce.
Fox Business’s Bradford Bates contributed to this report.
Original source of the article: Meta expects to lay off 20% of its employees as AI infrastructure costs continue to soar, report says
