iWorld
Meta plans 10 per cent workforce cut amid push
About 8,000 roles at risk as $145 billion AI spend reshapes costs
MUMBAI: Meta is trimming people to power machines and the trade-off is getting expensive. The tech giant is preparing to lay off around 10 per cent of its workforce, impacting nearly 8,000 employees out of a total headcount of 78,000, as it ramps up spending on artificial intelligence and data centre infrastructure. The move, outlined by chief executive Mark Zuckerberg in a recent internal Q&A, reflects a broader recalibration of costs as the company doubles down on compute-heavy investments.
Zuckerberg pointed to soaring expenses in GPUs, chips and data centres as the primary drivers behind the decision, noting that increased spending in one area inevitably forces cuts in another. In this case, personnel costs are taking the hit. He also signalled a structural shift in how work is done, suggesting that advances in efficiency mean tasks once handled by large teams can now be managed by significantly smaller groups.
The changes come amid signs of internal unease. Employee sentiment has reportedly deteriorated, with data from workplace platform Blind indicating that negative posts about the company have quadrupled since 2024.
Uncertainty is likely to persist. Chief People Officer Janelle Gale has indicated that further layoffs cannot be ruled out, even as the business remains fundamentally strong. The company plans to continue reshaping teams and redeploying talent where possible, though changing priorities and competitive pressures are expected to keep cost controls tight.
Externally, Meta is also navigating macroeconomic headwinds. Zuckerberg flagged the impact of geopolitical tensions, including the US conflict with Iran, noting that rising oil prices could dampen consumer spending and, in turn, affect advertising demand still the company’s core revenue engine.
At the same time, Meta is not pulling back on ambition. The company plans to invest more than $145 billion this year, largely into AI infrastructure, while also expanding its approach to building a broader portfolio of applications rather than relying on a handful of flagship platforms.
The message is clear: as Meta races to build its AI future, it is reshaping its present, one job cut at a time.
