Meta Plans 20% Workforce Reduction for AI Shift

Meta is reportedly planning to lay off up to 20% of its workforce to fund its investments in artificial intelligence and data centers.

Meta Platforms Inc. (META) is planning to reduce its workforce by up to 20% as it shifts focus towards its AI ambitions. The move aims to free up capital for investments in AI data centers and related infrastructure. According to reports, no final decision or timeline has been set, but senior leaders have been informed to begin planning the necessary cuts .

The development comes as Meta continues to face challenges in its AI efforts, which have reportedly been plagued by performance issues. The company has announced plans to unveil its new AI chips, sparking concerns among Nvidia investors. Despite these setbacks, analysts believe Meta's AI strategy may be stronger than ever, citing the company's strategic pivot towards AI-centric growth.

However, the workforce reduction plan has sparked uncertainty among Meta employees, with concerns over which jobs will be impacted. Some reports suggest the company may temporarily license superior AI models from other companies, such as Gemini, to power its products .