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Meta may axe 20% of staff as AI costs climb

Engadget •
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Meta is reportedly gearing up for one of the biggest workforce reductions in its history. Sources cited by Reuters say the company may cut 20 percent of its staff, roughly 15,800 employees, from a headcount of 78,865 recorded at the end of 2025. The move comes as the firm posted $200 billion in annual revenue.

Earlier this year Meta trimmed about 1,000 roles in its Reality Labs division, the unit behind its VR and metaverse ambitions. A year prior the company shed roughly five percent of its workforce after a smaller round of cuts. Simultaneously, Meta has been splurging on AI talent, snapping up startups such as Moltbook and Manus.

The latest earnings release showed fourth‑quarter revenue hovering near $60 billion, while total 2025 earnings topped $200 billion. A Meta spokesperson dismissed the layoff chatter as “speculative reporting about theoretical approaches.” Nonetheless, senior leaders have been instructed to begin “planning how to pare back,” suggesting the cuts are moving beyond rumor.

With a potential 15,800 jobs disappearing, the cuts could reshape Meta’s talent pool and accelerate its shift toward AI‑driven products. The reduction also signals