Meta has denied reports that it is planning to cut up to 20% of its workforce, pushing back against claims that the move could affect more than 15,000 jobs as it ramps up spending on artificial intelligence.
A company spokesperson told CNBC that the report was “speculative… about theoretical approaches,” after Reuters said senior executives had asked leaders to prepare for significant headcount reductions.
The report had suggested the potential cuts could impact more than one in five employees. Meta had around 79,000 employees as of December 2025, meaning layoffs on that scale would mark its largest workforce reduction to date.
The market reaction was mixed. Meta shares had fallen nearly 4% ahead of the report, according to CNBC, but rebounded by about 3% on Monday after the company dismissed the claims.
AI spending drives investor scrutiny
The speculation comes at a time when Meta is sharply increasing investment in artificial intelligence infrastructure.
The company said earlier this year that it expects AI-related capital expenditure of between $115 billion and $135 billion in 2026, roughly double its spending in 2025. The investment forms part of a broader push by major technology firms, with total planned spending by hyperscalers such as Amazon, Alphabet and Microsoft estimated at around $700 billion.
While the spending underscores Meta’s strategic pivot towards AI, it has also raised concerns among investors about cost discipline and returns.
Past layoffs and restructuring
Meta has previously undertaken large-scale workforce reductions. In late 2022, the company cut around 11,000 jobs, with Chief Executive Mark Zuckerberg describing it as part of a broader cost rationalisation effort.
Any fresh layoffs on the scale suggested in the Reuters report would represent a significant escalation. However, the company’s response indicates that no such plans have been formally confirmed.
Wider industry trend
The speculation around Meta reflects a broader shift across the technology sector, where companies are increasingly linking workforce restructuring to AI adoption.
According to data from Challenger, Gray & Christmas cited by CNBC, more than 12,000 job cuts in the United States in 2026 have been attributed to AI-related changes.
Several firms have already announced reductions. Block said it would cut 4,000 jobs to enable leaner, AI-driven operations, while Amazon eliminated around 16,000 roles earlier this year as part of a cost-cutting push tied to its AI investments. Atlassian has also announced plans to cut 10% of its workforce.
These moves point to a structural shift in how technology companies balance headcount and productivity.
Jefferies analysts noted that if large-scale cuts materialise alongside rising AI investment, it would signal a broader rethinking of the relationship between workforce size, growth and margins across the sector.
What comes next
For now, Meta’s position remains clear: the reported scale of layoffs is not confirmed.
However, the episode highlights a growing tension within Big Tech. As companies accelerate AI investment, pressure is mounting to offset costs through efficiency gains—often with implications for workforce size.
Whether Meta ultimately adjusts its headcount, or maintains current staffing levels while investing heavily in AI, will be closely watched by investors and peers alike.