Meta's Largest-Ever Layoffs Loom as AI Investments Drive Staff Cuts Meta is preparing for its most significant round of layoffs in company history, with employees in the wearables and ads divisions reportedly instructed to work remotely ahead of the cuts. According to Reuters, the restructuring could affect up to 20% of Meta’s nearly 79,000 employees, translating to approximately 15,800 job losses. This would surpass the previous waves of layoffs in 2022–2023, when the company trimmed 11,000 jobs in November and another 10,000 in early 2023. Earlier this year, Meta had already reduced its Reality Labs workforce by 1,500, signaling a continued push toward cost-cutting. The decision is tied to Meta’s $600 billion investment in AI infrastructure, with the company aiming to build data centers by 2028. Capital expenditures for 2026 are projected to reach as high as $135 billion, and Meta is also offering substantial pay packages to attract top AI researchers for its superintelligence team, led by Alexandr Wang. To fund these initiatives without alarming investors, the company is prioritizing headcount reductions. Mark Zuckerberg highlighted this strategy in January, noting that projects once requiring large teams are now being handled by smaller, highly skilled groups. The layoffs are compounded by internal challenges. Meta’s new AI model, codenamed Avocado, has reportedly underperformed in reasoning and coding benchmarks, with its release delayed to May. The company also shelved its Llama 4 Behemoth project, further straining its AI development efforts. With billions allocated to AI projects and a new engineering organization operating at a 1:50 manager-to-employee ratio, Meta is betting on a leaner, AI-driven future. This shift may leave many employees from older divisions without roles in the restructured company.#wearables #meta #alexandr_wang #reality_labs #avocado
