Meta plans to lay off over 15,000 employees; "Avocado" AI model launch postponed

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According to a British media report on the 14th, US tech giant Meta is planning large-scale layoffs, with the layoff rate possibly reaching 20% or higher. The total number of employees to be cut is expected to exceed 15,000. The goal is to cut costs, offset massive investments in AI infrastructure, and prepare for efficiency gains brought by AI-assisted work.

Sources familiar with the matter say that Meta senior management has recently signaled plans to start planning layoffs. As of the end of December last year, Meta had approximately 79,000 employees worldwide. Based on this figure, if the 20% layoff rate is confirmed, more than 15,000 employees will be affected, marking the largest layoff since the company’s major restructuring from 2022 to 2023. A Meta spokesperson responded that this is a speculative report about a theoretical layoff plan and that no official plans have been confirmed.

Behind this layoff plan is Meta’s aggressive betting on AI. The company announced plans to invest $600 billion in data center construction by 2028 and has spent at least billions of dollars on multiple acquisitions. To build its team, Meta has also offered top AI researchers four-year compensation packages worth hundreds of millions of dollars. Meanwhile, the company’s focus on improving efficiency has accelerated layoffs. CEO Mark Zuckerberg stated in January that he has found that projects that once required large teams can now be completed by a very talented individual. This remark seems to foreshadow the layoffs.

Before Meta’s large-scale AI investments, its Llama4 model faced setbacks last year. To prevent further setbacks, in June last year, Meta invested $14.3 billion in startup Scale AI and appointed 29-year-old Scale AI CEO Alexandr Wang as Meta’s Chief AI Officer. Zuckerberg said the new goal is to create superintelligence. Alexandr Wang has built an elite AI lab called TBD Lab within Meta, working on two new fruit-themed AI models—Avocado and Mango—focused on image and video generation. This year, Meta hoped to revive its position with Avocado, but the model’s performance also fell short of expectations. Meta has postponed its release plans from this month to at least May. CCTV Finance

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