Meta Platforms is considering sweeping layoffs that could affect 20 per cent or more of its workforce.

The potential cuts are aimed at helping the Facebook parent company manage the heavy costs associated with its aggressive investments in artificial intelligence infrastructure, as well as AI-focused acquisitions and recruitment, according to Reuters.

Meta had nearly 79,000 employees as of December 31, according to a recent regulatory filing.

“This is speculative reporting about theoretical approaches,” a Meta spokesperson said in a statement.

The report comes as several technology companies announced large-scale layoffs, saying the cuts are necessary as artificial intelligence begins to automate more tasks.

However, some analysts, along with executives such as Sam Altman of OpenAI, argue that many of these layoffs amount to “AI-washing,” where companies cite AI as the reason for job cuts while the real drivers may include issues such as over-hiring during the pandemic.

The most recent large-scale layoffs at Meta Platforms occurred in November 2022, when 11,000 employees were let go, with another 10,000 cuts following in March 2023.