Money Spent on AI, Instagram-Facebook Owner Lays Off Hundreds

Jakarta, CNBC Indonesia - Meta has once again carried out layoffs. This time, hundreds of employees from various divisions have been affected by the company’s latest efficiency policy.

This step is part of the parent company of Facebook and Instagram’s strategy to curb the surge in costs, particularly due to massive investments in the artificial intelligence (AI) sector.

The company has even projected that total spending could exceed US$162 billion to US$169 billion by 2026, as quoted by CNBC Indonesia from Reuters on Thursday (26/3/2026).

On the other hand, cost pressures also come from rising employee compensation. Meta is known to have allocated significant funds to acquire world-class AI talent.

Previously, signals of major layoffs had already emerged. Reuters reported that Meta had prepared workforce reductions of up to 20% or more of total employees. The company’s executives had also asked management ranks to begin preparing plans for those reductions.

Nevertheless, this latest wave of layoffs is said not to be as large as the initial plan. Based on a report from The Information, the cuts target several important units, including Reality Labs, the social media team, and the recruitment division.

Meta’s management emphasised that restructuring is a routine matter in the company’s operations.

“Teams across Meta routinely carry out restructurings or changes to ensure they are in the best position to achieve their goals. Where possible, we seek other opportunities for employees whose roles are impacted,” said a Meta spokesperson in a statement.

As of 31 December, Meta itself recorded nearly 79,000 employees.