Meta plans massive layoffs, 20% workforce likely to be affected amid rising AI costs. All you need to know

Mark Zuckerberg-led tech giant Meta is planning massive layoffs, which could impact around 20 per cent or more due to rising costs related to artificial intelligence (AI). The layoffs at Meta are expected to impact around 16,000 employees out of its approximately 79,000 employees, Reuters reported.

Tech layoffs 2026: Here’s what you need to know about Meta job cuts

Why is Meta planning to lay off 20% of its workforce?

The job cuts are aimed at offsetting the massive costs linked to AI, which is projected to reach around $600 billion for data centres by 2028, and shifting towards an AI-assisted model. 

Which departments at Meta may be affected by the layoffs?

Departments that are expected to be the most impacted are Reality Labs, as well as legacy and non-AI priority teams. Reality Labs has long been on the radar for cost-cutting due to significant operational losses. 

Job cuts in Reality Labs are expected to continue as the Menlo Park-based tech giant goes from fully immersive VR headsets and Metaverse projects towards AI-powered wearables. 

Furthermore, job losses are taking place in departments that are not directly aligned with Meta’s new Superintelligence Labs (MSL) or AI infrastructure. During Meta’s Q4 2025 earnings call, Zuckerberg had said that AI tools now allow “single very talented persons” to complete projects which required large teams in the past, leading to a reduction in staff across organisations. 

Apart from this, the middle management, fundamental AI research, as well as shared services & operations are also expected to be impacted.

Will middle management employees and AI divisions be affected?

In the case of the middle management, Meta is looking to further cut down on layers of management to increase the speed of decision-making, drawing from the ‘Year of Efficiency’.  

Even though AI is a priority, Meta is reportedly streamlining its AI units to move away from its broader research teams and focus on high-stakes models such as Avocado and Mango instead.

What happens to routine administrative and operational jobs at Meta?

Moreover, teams involved in routine administrative or operational tasks are also likely to see job cuts due to increased adoption of AI-assisted operations for internal efficiency. 

When will Meta begin the workforce reduction?

No final timeline has been set for the reported company-wide workforce reduction. While internal planning is ongoing at present, Meta has officially dismissed media reports as “speculative.”