Why Meta Weighs Workforce Cuts as AI Data Centre Spend Grows

Meta is balancing rising investment in data centre infrastructure with potential workforce reductions as it accelerates its push into AI.

A report from Reuters suggests the company may be planning layoffs affecting up to 20% of employees, as it increases spending and allocates resources for  compute capacity and automation.

According to Reuters, which cites three anonymous sources “familiar with the matter”, the proposed cuts are linked to efforts to offset the cost of AI infrastructure while reducing roles tied to routine tasks.

No timeline is confirmed, though senior leaders are reportedly being asked to identify areas for reduction.

Andy Stone, spokesperson for Meta, responded to the report stating it is “speculative reporting about theoretical approaches”.

The plans for employment cuts are reported in the same week that BlackRock announced US$100m of investment in to the AI infrastructure workforce for skilled trades including electricians, technicians and construction specialist workers.

Scaling data centre infrastructure

Meta’s infrastructure ambitions are centred on its Meta Compute division, launched in January 2026 to build and manage AI systems at scale. The unit reflects the company’s focus on expanding compute capacity through new data centre developments.

Mark Zuckerberg, CEO of Meta, outlines the scale of this buildout, stating the company “is planning to build tens of gigawatts this decade, and hundreds of gigawatts more over time”.

The investment required for hyperscale data centres is substantial.

Meta signals plans to invest at least US$600bn in US infrastructure and jobs over three years, with a large share directed towards data centre construction. This includes multiple sites designed to support long-term AI demand.

Financial forecasts reflect the impact of this strategy, as the company expects capital expenditure to rise sharply. 2026 spending is projected to land between US$115bn and US$135bn. This compares with US$72.2bn in 2025, indicating a near doubling of investment.

On an earnings call, Mark linked this spend directly to infrastructure expansion. “As we plan for the future, we will continue to invest very significantly in infrastructure to train leading models and deliver personal superintelligence to billions of people and businesses around the world,” he said.

Workforce changes alongside automation

As investment in data centres grows, Meta is also adjusting its workforce strategy. Reports suggest that automation and AI tools are taking on more routine functions, reducing the need for certain roles.

The company introduced a revised performance framework in early 2026, using four ratings from outstanding to not meeting expectations. The system ties employee evaluation more closely to business outcomes, reflecting a shift towards efficiency and measurable impact.

Meta already signalled its approach to workforce reduction in earlier announcements. In 2025, it stated plans to cut 5% of its global workforce based on performance. Previous reductions have included 11,000 roles in 2022 and 10,000 in 2023, a period described internally as the ‘Year of Efficiency’.

With a workforce of more than 75,000 employees as of mid-2025, a 20% reduction would affect around 15,000 people. While no confirmed plan is in place, the scale of the reported cuts aligns with the company’s broader restructuring.

This shift marks a move for data centre operators towards automation across infrastructure management, as AI systems are used to optimise workloads and streamline operations within facilities.

AI investment and industry scrutiny

Meta’s approach reflects a wider trend, where large technology companies increase spending on data centre infrastructure while reassessing workforce needs. As AI workloads grow, demand for compute continues to rise which places pressure on both capital and operational models.

At the same time, the link between AI and job reductions is being questioned. Speaking at the AI Impact Summit, OpenAI CEO Sam Altman raised concerns about how companies frame these changes.

“I don’t know what the exact percentage is, but there’s some AI washing where people are blaming AI for layoffs that they would otherwise do, and then there’s some real displacement by AI of different kinds of jobs,” he said.

Sam adds that while some disruption is expected, new roles are likely to emerge alongside technological change. “We’ll find new kinds of jobs, as we do with every tech revolution.”