According to Reuters, Meta is looking to offset spending on AI and data centers with a massive round of layoffs. Sources familiar with the matter say the company could lay off as much as 20 percent of its staff, eliminating roughly 15,800 positions. That would be the largest series of layoffs at the company since it terminated 22,000 workers over just a few months between November 2022 and early 2023.

Word of the potential downsizing comes after Meta signaled that it was all but giving up on VR and the Metaverse, slashing budgets and closing studios. Instead, the company has been spending big to attract AI talent, build data centers, and acquire companies like Moltbook.

Amid all this, the company has also repeatedly found itself in hot water over its smart glasses, chatbots, and its impact on teens.

When asked for comment, Meta spokesperson Andy Stone said, “This is speculative reporting about theoretical approaches.”

Update March 14th: Added comment from Meta.