Meta’s Massive AI Makeover Triggers 8,000 Job Cuts
As part of its massive investment in Artificial Intelligence (AI) technology, Meta — the parent company of Facebook and Instagram — is undergoing a major corporate restructuring. This week alone, the company is set to lay off nearly 8,000 employees. At the same time, Meta is reassigning another 7,000 employees into four entirely new AI-focused divisions aimed at developing advanced AI tools and applications.
According to reports by Reuters and The New York Times, Meta’s Head of Human Resources, Janelle Gale, informed employees about the restructuring through an internal memorandum. She stated that the new organizational structure would make Meta more productive and create a more effective working environment.
‘Work From Home’ and Layoff Emails on Wednesday
Under internal instructions, Meta employees were directed to work from home on Wednesday, May 20. On the same day, employees were scheduled to receive emails informing them whether they had been reassigned to a new AI division or had lost their jobs.
Earlier, at the end of April, Meta announced plans to eliminate 8,000 positions and freeze recruitment for another 6,000 vacant roles in an effort to make the company more efficient and cost-effective. Essentially, after scaling back focus on its metaverse projects, Mark Zuckerberg’s company has now begun channeling nearly all of its attention and investment toward AI technology.
Zuckerberg’s Billion-Dollar AI Bet
Following the underwhelming performance of its metaverse ambitions, Meta is now investing record amounts into AI. The company plans to build massive data centers with “tens of gigawatts” of capacity within this decade. Meta has also formed a “Superintelligence” AI team, for which Zuckerberg is reportedly personally selecting top AI experts and inviting them to his home for recruitment discussions.
According to information published by The New York Times, Zuckerberg told investors that Meta is expected to spend between $115 billion and $135 billion solely on AI development during 2026.
Meta Workforce Shrinks by 10 Percent
By the end of 2025, Meta’s total workforce stood at approximately 78,000 employees. As a result, the layoff of 8,000 workers will permanently eliminate nearly 10 percent of the company’s jobs.
Reuters has also indicated that Meta may carry out additional layoffs later this year.
However, Meta has announced a substantial compensation package for affected employees. Workers losing their jobs will receive 16 weeks (four months) of base salary. In addition, they will be paid an extra two weeks’ salary for every year they worked at Meta.
DBTech/BMT/OR
