Meta is preparing to cut thousands of jobs as early as next month, with deeper layoffs expected later this year, according to a report.
The tech giant intends to slash roughly 10% of its global workforce — or nearly 8,000 employees — in an initial round of cuts on May 20, sources told Reuters.
The company is also planning additional layoffs in the second half of the year, though details including timing and scope remain unclear, the outlet reported.
The report follows earlier Reuters reporting that Meta was weighing cuts that could affect at least 20% of its workforce as it seeks to offset rising artificial intelligence costs.
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When reached by FOX Business, Meta declined to comment.
Previously, a Meta spokesperson told FOX Business the earlier Reuters report was “a speculative report about theoretical approaches.”
The cuts come as Meta looks to offset the cost of AI infrastructure and streamline operations with AI-assisted workers.
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CEO Mark Zuckerberg has invested billions of dollars in artificial intelligence as the company pivots toward the technology.
Meta has also reorganized teams within its Reality Labs division and moved engineers into a new Applied AI group focused on developing AI agents capable of writing code and performing complex tasks, according to Reuters.
Meta employed nearly 79,000 people as of Dec. 31, according to its latest filing.
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A 20% reduction would mark Meta’s largest restructuring since 2022 and early 2023.
The company laid off 11,000 workers in November 2022 — about 13% of its workforce — and cut another 10,000 jobs months later.
Other major companies, including Amazon, have also announced layoffs linked to AI developments.
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Amazon said in January it would cut around 16,000 jobs after previously announcing about 14,000 white-collar layoffs in October, bringing total reductions to roughly 30,000 roles.
Reuters contributed to this report.
