Meta reportedly considering layoffs that could affect 20% of the company | TechCrunch

"Meta is considering major layoffs that could affect 20% or more of the company's workforce, according to Reuters. These layoffs could help the Facebook parent company offset its aggressive spending on AI infrastructure, as well as AI-related acquisitions and hiring. Meta employed nearly 79,000 people as of December 31, according to a recent filing."

"The report comes as many tech companies - most recently Block - have announced sweeping layoffs that they say are necessary as AI automates more work. But some pundits, and even executives like OpenAI's Sam Altman, have suggested that many of these cuts are "AI-washing," where executives use AI as cover for other issues, such as over-hiring during the pandemic."

Meta is reportedly considering significant layoffs that could impact 20% or more of its approximately 79,000-person workforce. The company aims to offset substantial spending on AI infrastructure, acquisitions, and hiring through these reductions. Meta denies the report as speculative. This announcement aligns with broader tech industry trends, as companies like Block have announced major layoffs attributed to AI automation. However, critics and executives, including OpenAI's Sam Altman, question whether these cuts represent genuine AI-driven efficiency or constitute "AI-washing"—using artificial intelligence as justification for other issues like pandemic-era over-hiring. Meta previously conducted major layoffs in November 2022 and March 2023.

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