Bengaluru, March 18: Meta Platforms is reportedly considering the largest layoffs in its history, with plans that could impact over 20% of its global workforce as the company doubles down on artificial intelligence investments.

According to reports emerging in mid-March 2026, the potential job cuts may affect around 15,000 to 16,000 employees out of nearly 79,000 staff. While Meta has described the reports as “speculative,” insiders suggest leadership is already preparing for a leaner organisational structure.

AI Costs Drive Restructuring

The primary reason behind the reported layoffs is Meta’s aggressive push into AI infrastructure. The company is expected to spend up to USD 135 billion in capital expenditures in 2026, nearly doubling last year’s outlay. Investments include advanced AI chips, large-scale data centres, and next-generation models such as the rumoured “Avocado” project. Dell Layoffs: Workforce of US-Based Tech Giant Shrinks 10% in Fiscal 2026 Amid Limited Hiring and Cost Cutting, 11,000 People Lose Jobs.

Meta has also outlined a long-term plan to invest up to USD 600 billion in AI infrastructure by 2028. To offset these massive costs, analysts believe the company is aiming to cut around $6 billion annually from operating expenses, largely through workforce reductions. Tech Layoffs 2026: 38,645 Employees Laid Off by 60 Companies So Far This Year.

Shift Toward AI-Led Efficiency

CEO Mark Zuckerberg has repeatedly highlighted how generative AI is transforming productivity, enabling smaller teams to handle workloads that previously required large departments.

Internally, Meta is said to be restructuring teams with significantly higher manager-to-employee ratios, in some cases as high as 1:50. This signals a major shift toward automation, reducing middle management layers and routine roles that can be replaced or supported by AI tools.

Divisions at Risk

Reports indicate that certain business units may face deeper cuts. Meta’s Reality Labs division, which focuses on metaverse and virtual reality products, remains under pressure after sustained financial losses. Legacy teams not aligned with the company’s new AI-focused initiatives, including “Superintelligence Labs,” are also seen as vulnerable.

Market Reaction and Industry Impact

Despite concerns over job losses, investors have responded positively. Meta’s stock saw a rise of nearly 3% following the reports, reflecting confidence in its AI-first strategy and cost optimisation efforts.

If executed at this scale, the layoffs would surpass Meta’s earlier “Year of Efficiency” in 2022 and 2023, when the company cut approximately 21,000 jobs across multiple rounds.

Big Tech’s New Playbook

Meta’s strategy reflects a broader trend across the tech industry: reducing large workforces while aggressively hiring top AI talent. The company has reportedly offered massive compensation packages to elite researchers, signalling a shift toward fewer but highly specialised roles.

As Meta accelerates its transformation into an AI-driven company, the reported layoffs could mark a defining moment in how Big Tech balances innovation with workforce restructuring.

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(The above story first appeared on LatestLY on Mar 18, 2026 08:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).