Meta Faces AI Costs, Plans Sweeping Layoffs

Meta Platforms Inc. is planning potential mass layoffs that could affect up to 20% of its workforce, according to Reuters. This move is attributed to efforts to balance the increasing costs of investments in artificial intelligence.

Meta's top executives have reportedly informed senior managers about the plans and asked them to prepare for the layoffs. Meta spokesman Andy Stone responded that these are "speculations about theoretical approaches."

Meta had undertaken significant layoffs in late 2022 and early 2023, laying off 11,000 employees in November 2022 (approximately 13% of its workforce) and announcing further cuts of 10,000 jobs shortly thereafter.

Meta CEO Mark Zuckerberg has emphasized artificial intelligence, with the company investing heavily in attracting top researchers and building data centers. He has also mentioned the increase in efficiency that will result from these investments.

Meta has announced plans to invest $600 billion in building data centers by 2028 and acquired Moltbook, a social networking platform for artificial intelligence agents. It is also investing at least $2 billion to acquire the Chinese artificial intelligence startup Manus.