Meta Plans Workforce Cut of More Than 20% to Fund AI Spending and Streamline Operations With AI Tools

Meta Platforms has made generative AI, data centers and in-house chips central to its strategy in recent years while continuing to restructure high-cost divisions such as Reality Labs. Rapidly rising spending on AI infrastructure and top talent means the company must reallocate resources through layoffs and organizational changes even as it continues to grow, highlighting the cost pressures facing major technology companies as they pursue AI.

Meta reportedly cut hundreds of jobs in April 2025, affecting Reality Labs, teams working on social products including Facebook, and its recruiting organization. The company did not disclose the exact number of cuts in each division or the amount saved. During the same period, Meta eliminated some positions while raising senior executives’ pay and hiring expensive AI talent, signaling a faster shift of resources toward AI research, development and infrastructure.