Meta to Lay Off 10% of Workforce in Shift Toward AI Investment

Meta's Workforce Reduction Announcement

In a significant move to sharpen its focus on artificial intelligence (AI), Meta Platforms, Inc. is set to lay off 10% of its workforce, impacting approximately 8,000 employees. This decision indicates the company's strategic pivot towards bolstering its investments in AI technologies amidst a broader trend of job cuts across the tech industry.

Rationale Behind the Layoffs

The layoffs are scheduled to commence on May 20, according to a memo sent to employees on Thursday. In addition to the layoffs, Meta announced it would halt hiring for 6,000 open roles. The company has faced several rounds of job cuts in recent months as it seeks to enhance efficiency while trying to catch up in the competitive AI landscape, where competitors like OpenAI, Google, and Anthropic have taken a lead.

Earlier this year, Meta laid off nearly 10% of its workforce connected to metaverse initiatives, letting go of approximately 1,000 employees from the Reality Labs division. Further cuts occurred in March, affecting various departments including Facebook and global operations.