Meta weighs 'significant' layoffs to fund 600 billion dollar AI expansion

Meta is reportedly preparing for significant redundancies as it redirects financial resources towards artificial intelligence.

Sources indicate that managers have been tasked with drafting cost-cutting measures, with projections suggesting that up to 20 per cent of the workforce—approximately 16,000 employees—could be affected.

This potential reduction follows major contractions in 2022 and 2023, signalling a continued shift in Silicon Valley’s operational strategy.

Chief Executive Mark Zuckerberg recently informed investors that the company is "elevating individual contributors and flattening teams."

He noted that he is seeing "projects that used to require big teams now be accomplished by a single, very talented person."

To facilitate this, Meta has established a new engineering division where manager-to-employee ratios could reach 1:50.

Despite these internal preparations, Meta spokesperson Andy Stone described the reports as "speculative reporting about theoretical approaches."

The move highlights a broader industry trend where firms like Atlassian and Block have also trimmed staff to finance AI infrastructure.

Meta intends to invest $600 billion in data centres by 2028 and has secured high-profile talent with lucrative pay packages. However, the company's urgency follows internal challenges:

• Early versions of Llama 4 models faced criticism for misleading results.
• The Behemoth model was ultimately shelved last summer.
• New models, Avocado and Mango, have reportedly fallen short of expectations.

By reducing head count, Meta aims to satisfy Wall Street demands while funding the expensive race for superintelligence.

This strategy underscores how aggressively Big Tech is trimming staff to finance the current AI boom.