Tech giant Meta is considering sweeping layoffs that could wipe out around one in five employees, according to sources within the company. The owner of Facebook and Instagram is reportedly weighing job cuts that could affect about 20% of its workforce, or roughly 16,000 roles.

The company, which employs around 79,000 people globally, is understood to be pushing ahead with plans to increase its use of Artificial Intelligence (AI) and automation across its 31 data centres worldwide. It would represent the biggest cull of its workforce since November 2022, when it laid off around 11,000 employees, representing roughly 13% of its workforce, before axing a further 10,000 roles four months later. In a January earnings call, founder and CEO Mark Zuckerberg argued that advances in AI will allow Meta to run a leaner operation.

“We’re starting to see projects that used to require big teams now be accomplished by a single very talented person,” he said on the call.

“I want to make sure that as many of these very talented people as possible choose Meta as the place that they can make the greatest impact.”

According to Reuters, executives are exploring job reductions to offset the soaring cost of AI infrastructure and development, as the company prepares to spend huge sums on new technology in the coming years.

Meta is expected to spend up to $135 billion in 2026 on AI infrastructure, including major cloud-computing deals to power its next generation of artificial intelligence tools.

Industry analysts say the layoffs could save the company around $6 billion annually, helping fund its massive AI expansion while boosting profits.

The reports have sparked fears of a wider “AI jobs massacre” across the technology sector as companies increasingly rely on artificial intelligence to replace work previously done by large teams.

A spokesperson for the company told the Daily Mail that the claims were “speculative reporting about theoretical approaches.”

Meta’s plans mirror a wider trend across major US companies, particularly in the tech sector this year, with executives increasingly citing advances in artificial intelligence as a reason for workforce reductions.

In January, Amazon confirmed plans to cut around 16,000 jobs, roughly 10% of its workforce. Last month, fintech firm Block slashed nearly half of its staff, with chief executive and Twitter founder Jack Dorsey explicitly pointing to the growing power of AI tools to help companies operate with smaller teams.