Meta is considering a new round of layoffs that could ultimately affect 20% or more of its workforce, according to a Reuters report citing people familiar with the discussions. The potential cuts have not been finalized and no timetable has been set, but senior leaders have reportedly been asked to prepare for reductions as the company looks for savings.

The discussions come as Meta accelerates its push into generative artificial intelligence under Chief Executive Mark Zuckerberg. The company has been offering unusually large compensation packages to recruit top AI talent and has outlined plans to spend roughly $600 billion on data center buildouts by 2028.

Executives have also pointed to productivity gains from AI inside the company. Zuckerberg said earlier this year that work once handled by large teams can increasingly be done by a much smaller group, reflecting a wider belief across the technology sector that AI tools will allow leaner organizations.

If Meta proceeds with cuts on the scale under discussion, they would be its biggest since the company’s 2022 and 2023 restructuring drive, when it eliminated tens of thousands of roles during what it called its year of efficiency. Meta reported nearly 79,000 employees at the end of 2025.

The possible layoffs also come after a difficult stretch for Meta’s AI program, including criticism of benchmark claims around earlier Llama 4 models and delays to its largest planned release. The company has continued to spend aggressively on infrastructure, acquisitions and research as it tries to strengthen its position in the race for advanced AI systems.