Meta faces AI‑driven cost crunch, may cut over 10,000 jobs to curb spending

Meta’s AI‑heavy roadmap is now colliding with its balance sheet, and the crunch is translating into a fresh wave of cuts. According to a report that first surfaced on Chinese finance forum 富途牛牛, the company is weighing a reduction of more than 10,000 positions as it grapples with “financial pressures from AI investment.” The memo, which has been cited by multiple outlets, suggests the cuts would be part of a broader effort to rein in spending after Meta poured billions into large‑scale models, data‑center upgrades and a nascent “metaverse‑plus‑AI” product suite.

TechCrunch confirmed the development, noting that Meta is “conducting yet another round of layoffs” and that the move follows a series of workforce reductions that have already trimmed the staff count by tens of thousands since the start of the year. The outlet did not disclose a timeline, but its coverage implies that the new round could be announced as early as the next quarterly earnings call. CNBC echoed the same narrative, reporting that “Meta planning thousands of more cuts after widespread layoffs” and citing internal sources who say the company is still feeling the sting of its aggressive AI spend.

The financial strain stems from Meta’s gamble on generative AI to power its core products—Feed, Reels and the upcoming AI‑driven avatar experiences. While the firm has touted early breakthroughs, the cost of training and running models at scale has risen sharply, forcing executives to re‑evaluate headcount versus runway. The layoffs, if they materialize, would likely target both engineering teams working on AI infrastructure and peripheral groups that were expanded during the AI push.

Analysts observing the situation point out that Meta’s predicament mirrors a broader industry trend: tech giants that sprinted into AI in 2023 are now confronting “AI‑driven cost crunches” as revenue growth stalls. The company’s next steps—whether it trims the workforce, scales back AI projects, or seeks new monetization pathways—will shape not only its own profitability but also the competitive dynamics of the AI arms race.