Meta reportedly considering layoffs that could affect 20% of the company

Meta is reportedly contemplating substantial layoffs that could impact 20% or more of its workforce, as indicated by a recent Reuters report. This move appears to be a strategy to counterbalance the company's extensive expenditures on AI infrastructure, along with related acquisitions and hiring initiatives. As of December 31, Meta's workforce was nearly 79,000 employees, according to official filings. In response to inquiries, TechCrunch reached out to Meta for clarification. A spokesperson for the company described Reuters' reporting as "speculative" and focused on theoretical scenarios. This news emerges amid a trend in the tech sector, with companies like Block recently announcing major layoffs, citing the need to adapt to the increasing automation of tasks through AI technology. However, some industry experts, including OpenAI's CEO Sam Altman, have raised concerns that these layoffs may be an instance of “AI-washing.” This term refers to the practice of using AI as a justification for workforce reductions that may stem from other issues, such as excessive hiring during the pandemic. Notably, the last significant round of layoffs at Meta occurred in November 2022, when the company cut 11,000 jobs, followed by an additional 10,000 positions in March 2023.