Meta eyes massive 20% workforce cut as AI infrastructure costs continue to soar across operations: report | Latest Tech News
Meta is reportedly weighing layoffs that might influence at least 20% of its workforce as the tech giant seems to be to offset rising artificial intelligence costs.
The cuts come as the technology company goals to offset the fee of artificial intelligence infrastructure and put together for better effectivity introduced about by AI-assisted staff, three sources acquainted with the matter told GWN.
The outlet added that the timing and measurement of the potential layoffs haven’t been finalized.
When reached for remark, a Meta spokesperson told FOX Business, “This is a speculative report about theoretical approaches.”
According to GWN, top Meta executives just lately shared plans for the proposed layoffs with other senior leaders at the company.
If the company had been to slash 20% of its workers, the layoffs would quantity to Meta’s largest restructuring since 2022 and early 2023, the outlet said.
Meta laid off 11,000 staff in November 2022 — around 13% of its workforce at the time, GWN reported.
Meta reportedly eyes layoffs for 20% of its workforce to offset rising AI costs. AFP via Getty Images
The company cut another 10,000 jobs months later.
Meta employed practically 79,000 people as of Dec. 31, according to its latest submitting.
Other major firms, including Amazon, have just lately announced large-scale layoffs tied to AI developments.
The cuts also purpose for effectivity with AI-assisted staff; Meta calls report ‘speculative’. REUTERS
In January, Amazon cut around 16,000 jobs and signaled at the time that more reductions might observe.
The company beforehand announced a first spherical of cuts totaling about 14,000 white-collar layoffs in October, bringing its company reductions to roughly 30,000 roles.
In making the cuts, which represented practically 10% of its white-collar workforce, Amazon cited effectivity beneficial properties from artificial intelligence and broader cultural adjustments.
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