Meta Platforms is reportedly considering one of the largest layoffs in its history, with plans to cut up to 20 percent of its workforce as it ramps up spending on artificial intelligence.

The move sent Meta’s shares up nearly 3 percent in pre-market trading, signalling investor approval of a strategy that prioritises efficiency over headcount.

If executed, the cuts could affect more than 15,000 employees from Meta’s workforce of roughly 79,000, making it the company’s most significant round of layoffs since its 2022 to 2023 restructuring, when over 20,000 jobs were eliminated.

At the centre of the decision is Meta’s aggressive investment in artificial intelligence.

The company is expected to spend as much as $135 billion on AI infrastructure in 2026 alone, including data centres, cloud capacity, and talent acquisition.

Executives believe AI can significantly improve productivity, allowing smaller teams to do work that previously required large departments. The planned layoffs are seen as a way to offset these rising costs while reshaping the company into a more AI-driven organisation.

Analysts estimate that a 20 percent workforce reduction could save Meta around $6 billion annually and boost core earnings.

Despite the human cost, investors have responded positively.

Meta’s stock rose following the reports, reflecting confidence that cost-cutting combined with AI investment could improve long-term profitability.

However, the company has not confirmed the layoffs, describing the reports as “speculative”.

There are also concerns about whether the savings will meaningfully offset the scale of Meta’s AI spending, which continues to climb rapidly.

Meta’s situation reflects a broader trend across the tech industry.

Companies are increasingly restructuring around artificial intelligence, cutting roles while investing heavily in automation and machine learning capabilities. Firms like Amazon and Block have already announced significant job reductions tied to AI-driven efficiency.

Analysts suggest Meta’s move could trigger similar actions across Silicon Valley, as competitors attempt to keep pace in the race to build and deploy advanced AI systems.

Beyond the immediate market reaction, the development signals a deeper shift in how technology companies operate.

Meta is no longer just a social media company. It is repositioning itself as an AI-first organisation, where capital flows into infrastructure and algorithms, and human labour becomes more selectively deployed.

For employees, it raises familiar concerns about job security in an AI-driven economy.

For investors, it reinforces a different narrative: that in the next phase of Big Tech, efficiency may matter more than expansion.

And for the industry at large, it suggests that the cost of competing in AI will not just be measured in billions of dollars, but in jobs.