Meta is exploring layoffs as part of its strategy to manage costs associated with AI infrastructure. The company’s stock rose as much as 3% on Monday after signing a cloud-computing deal with Nebius worth up to $27 billion. This deal includes a commitment from Meta to purchase up to $15 billion in additional compute capacity from Nebius over a five-year period.
Despite this positive development, Meta is reportedly considering laying off up to 20% of its workforce to offset rising AI spending. The company had previously cut more than 21,000 jobs as part of its ‘year of efficiency’ initiative in late 2022 and early 2023. As of December 31, Meta had nearly 79,000 employees.
Meta’s forecast spending on AI is projected to rise significantly, with estimates for 2026 ranging between $115 billion and $135 billion, up from $72.22 billion in 2025. This increase in spending reflects the company’s commitment to enhancing its AI capabilities, although it raises concerns about workforce sustainability.
Insider trading data reveals that Meta insiders have traded $META stock 104 times in the past six months, with no purchases and all sales, indicating a lack of confidence among insiders regarding the stock’s future performance.
A Meta spokesperson commented, “This is a speculative report about theoretical approaches,” referring to the potential layoffs. Analyst Barton Crockett added, “There could be more down the road if AI is truly this impactful on staff productivity.”
Details remain unconfirmed regarding the date and extent of the layoffs, and the overall impact of AI on Meta’s workforce productivity remains unclear. Observers are closely monitoring the situation as it develops.
