Meta, in a massive workforce purge, is likely to layoff around 8,000 employees, in its most significant since a restructuring in late 2022 and early 2023, three sources who are aware of the company plans told Reuters. The sweeping layoffs are planned for this year in May. According to the reports, the layoffs are planned for May 20.
The Facebook and Instagram owner will lay off about 10 per cent of its global workforce, in that initial round, one of the sources said. The company is planning further layoffs in the later half of the year. The details of the layoffs, including date and size, were not yet settled.
The sources have added that executives are likely to adjust their plans as they observe developments in artificial intelligence capabilities. It was earlier reported that Meta was planning to sack 20 per cent or more of its global workforce.
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Amazon.com similarly has trimmed 30,000 corporate employees in recent months, representing nearly 10% of its white-collar workers, while in February the fintech company Block chopped nearly half of its staff.
In both of those cases, executives tied the cuts to efficiency gains from artificial intelligence.
Layoffs.fyi, which tracks job cuts in the tech companies around the world, has mentioned that over 73,000 employees have lost their jobs this year. In 2024, 153,000 employees were laid off.
Despite the layoffs, the company has lately been in a very comfortable position. With AI-driven work, the future is expected to feature fewer management layers and greater efficiency powered by AI-assisted workers.
Meta’s shares are up 3.68% since the start of the year, although they are down from a record high achieved last summer. Last year, it generated more than $200 billion of revenue and achieved a $60 billion profit despite outsized spending on artificial intelligence.
Recently, Sama – a company that was sued by Facebook content moderators over poor working conditions – said that after Meta, Facebook’s parent company, ended its contract.
Sama said it has issued a formal layoff notice that would affect 1,108 staffers, adding that it was “actively supporting affected employees with care and respect”.
The Walt Disney Co has also announced massive layoffs. CEO Josh D’Amaro informed the staff that around 1,000 jobs are expected to be eliminated in TV businesses, ESPN, product and technology.
(With agency inputs)