Meta is reportedly terminating employees, impacting nearly 20% of its workforce due to mounting artificial intelligence (AI) costs.
The move come as the tech giant compensates the cost of AI infrastructure and prepares for better efficiency brought about by AI-assisted employees, sources close to the matter told Reuters.
However, timings and size of the potential layoffs has yet to be finalized.
A Meta spokesperson told FOX Business, "This is a speculative report about theoretical approaches."
As per Reuters, leading Meta executives recently shared plans for the proposed layoffs with other senior leaders at the company.
If the company were to slash 20% of its employees, the layoffs would represent the company’s major restructuring from 2022 and early 2023.
Notably, Meta laid off nearly 11,000 workers in November 2022, nearly 13% of its workforce at the time.
As per the latest filing, Meta employed nearly 79,000 individuals as of December 31.
Leading industry players, such as Amazon recently revealed layoffs at a larger scale tied to AI developments.
In January, Amazon layed off nearly 16,000 employees and signaled over more cuts at that time.
