New Delhi, March 14: American tech giant Meta Platforms is reportedly contemplating another significant round of layoffs as the company aims to increase spending on artificial intelligence (AI) infrastructure while enhancing operational efficiency.
According to a report by Reuters, discussions within the company have considered a reduction of 20% or more of Meta’s total workforce. Based on the company’s employee count of approximately 79,000 at the end of December, this could mean cutting around 16,000 jobs.
However, Meta spokesperson Andy Stone described this report as “speculation based on potential strategies.” The report indicates that no final decision has been made regarding the scale or timing of the layoffs.
Additionally, the report states that senior executives have hinted to other leaders about possible job cuts and have asked teams to assess how operations can be made more efficient.
If such a large number of layoffs occurs, it could represent Meta’s most significant restructuring process to date. Previously, the company had laid off over 21,000 employees in total during 2022 and 2023 to reduce costs.
It is reported that Meta’s CEO, Mark Zuckerberg, is preparing the company to compete more aggressively in the generative AI sector, which may prompt this move.
Meanwhile, a recent report from Morgan Stanley suggests that the long-term impact of AI on jobs may not be as severe as many believe. The report indicates that while some jobs may become automated, the likelihood of widespread unemployment is low. Instead, many workers may transition to new types of jobs, some of which may not yet exist.
The report also states that while AI will change the nature of work, it will not eliminate it entirely. However, many industry leaders believe that most computer-based white-collar jobs could be largely automated within the next 12 to 18 months.
In the meantime, American tech company Oracle is also planning to eliminate 20,000 to 30,000 jobs to increase AI data center capacity, while Amazon recently announced the layoff of 16,000 employees as part of its AI restructuring plan.
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