Sources within Meta indicate the company is weighing sweeping layoffs that could impact approximately 20% of its global workforce, which numbers around 79,000 employees. This potential reduction, affecting roughly 16,000 roles, comes as Meta pushes ahead with plans to increase its use of artificial intelligence and automation across its 31 data centers worldwide. Industry analysts say the layoffs could save Meta around $6 billion annually, helping fund its massive AI expansion while boosting profits. The company is expected to spend up to $135 billion in 2026 on AI infrastructure, including major cloud-computing deals to power its next generation of artificial intelligence tools. However, a spokesperson for Meta told the Daily Mail that the claims about layoffs were speculative reporting about theoretical approaches, leaving it unclear whether the company will actually proceed with the reported cuts. The exact timeline for potential layoffs at Meta and other tech companies remains uncertain.
Meta has a recent history of workforce reductions, having laid off around 11,000 employees in November 2022, representing roughly 13% of its workforce, before axing a further 10,000 roles four months later. These cuts reflect a strategic shift as the company intensifies its focus on AI investments.
Similarly, other tech firms are citing AI as a driver for layoffs. Twitter co-founder Jack Dorsey says his technology firm Block is laying off almost half its workforce because artificial intelligence fundamentally changes what it means to build and run a company. The layoffs at Block will mean the headcount at the company will fall to less than 6,000 from 10,000. Block has seen several rounds of layoffs since 2024 but this is the first time it has cited AI as the reason for redundancies. Despite these cuts, Block's financial report showed strong demand for its products and services, pushing up profits at the end of last year.
This trend extends across the tech industry, with companies like Amazon, Microsoft, and Google also laying off workers as their focus has shifted to huge investments in AI. At the end of January, Amazon laid off 16,000 employees, having already cut 14,000 roles a few months earlier.
AI automation tools are increasingly replacing human roles in tech companies. Most tech companies today are using AI tools that automatically write the computer code required to operate software or websites, like Claude Code from Anthropic or Codex from OpenAI. The specific AI tools and automation processes that are replacing human roles at companies like Meta and Block are not detailed in reports, but their adoption underscores a shift toward automated workflows. The long-term impact of AI on job markets beyond immediate layoffs, including potential new job creation, remains an open question as the industry evolves.