Meta Plans 15,000 Layoffs: AI Costs and AI Replaces

Meta is preparing the company's largest-ever round of layoffs. Over 15,000 employees — more than 20 percent of the workforce — could lose their jobs, according to Reuters and Business Insider.

Two Driving Forces

The mass layoffs are driven by two interconnected forces:

1. AI infrastructure costs: Meta has committed to spending $600 billion on US infrastructure through 2028, with most directed at AI data centers. That's expensive — and someone has to pay.

2. AI replaces job functions: Meta is preparing for a leaner, more AI-assisted organization. The technology the company is spending billions on is rapidly making many human functions redundant.

Internal AI Crisis: Avocado Underperforms

Alongside the announced layoffs, Meta is struggling with its next major AI model, codenamed Avocado. Originally planned for a March launch, it has now been pushed back to at least May.

Internal tests show Avocado underperforming rivals like Google's Gemini 3.0 on reasoning, coding, and writing. Meta's elite unit TBD Lab, led by Wang, was specifically created to build Avocado — but has so far only delivered one public release: Vibes, an AI video app.

Previously, Meta scrapped its flagship Llama 4 Behemoth model after accusations of misleading benchmark results.

Timeline

No date has been finalized, but some sources confirm that cuts could come within a month.

CIO Perspective

This is the pattern every organization must prepare for: AI investments are costly, but they are partly financed by the workforce they replace. For enterprise leaders, the question is no longer "if" — but "when" and "how."

Source: Reuters, Business Insider, Times of India