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Meta Platforms shares rose on March 16 after reports said the company is considering layoffs that could affect 20% or more of its workforce as it increases spending on artificial intelligence. If Meta moves ahead, this would be its highest staff reduction since the 2022 and 2023 restructuring that eliminated about 21,000 jobs during its “year of efficiency.”
Meta had about 79,000 employees at the end of December. A 20% reduction would affect nearly 15,800 positions. The reported plan comes as the company raises spending on AI infrastructure, data centers, and cloud computing capacity. Meta has projected 2026 capital expenditure in a range of $115 billion to $135 billion as it expands its AI operations and supports its core business.
The reported layoff discussions came as investors focused on how Meta plans to manage the cost of its AI expansion. The company said the reports were speculative, but the market reaction showed attention remained on the financial impact of any workforce reduction tied to AI-related investment.
Analyst estimates suggest a 20% workforce cut could produce billions of dollars in savings. Based on the company’s employee base, such a reduction would also mark one of the largest headcount actions in the technology sector this year. Meta shares had fallen earlier in 2026 before rising in premarket trading on Monday.
Meta has spent heavily in recent years to strengthen its position in AI. The company continues to build data center capacity and secure computing power needed to train and run AI models at scale. This spending has supported improvements in advertising tools, while the company continues to work on newer AI models, including Avocado.
On the same day, Meta entered a long-term AI infrastructure agreement with Nebius worth up to $27 billion over five years. The arrangement includes $12 billion in dedicated capacity and up to $15 billion in additional available compute capacity. The agreement expands Meta’s access to external infrastructure as demand for AI computing power remains high.
Nebius said the capacity will be delivered across several locations and will include one of the first large-scale deployments of Nvidia’s Vera Rubin chips. The company added that the contract expands its existing partnership with Meta and supports the growth of its AI cloud business.
The agreement shows the scale of Meta’s infrastructure commitment as it builds out the systems required for AI development. Meta has said its AI-related capital expenditure could reach as much as $135 billion this year. The Nebius contract adds a major external source of compute alongside Meta’s own internal infrastructure buildout.
The reported Meta discussions come during a broader rise in AI-linked layoffs across global technology companies. More than 61,000 job cuts tied to AI have been announced since November, including reductions at major firms such as Amazon and WiseTech. The figures have increased scrutiny on how companies are using automation and AI tools to change staffing levels.
The debate has also widened after several executives linked job reductions to AI-driven productivity gains. At the same time, some industry leaders have said companies may also be using AI as a reason for cuts that could have happened after previous aggressive hiring.
Also Read: AI vs Jobs: Meta Considers Cutting Thousands of Roles to Fund AI Expansion
