Meta's AI Shakeup: 600 Jobs Cut To Speed Up Progress
Meta Platforms, Inc. is cutting about 600 jobs in its AI division to streamline operations and enhance agility. This decision, communicated by Chief AI Officer Alexandr Wang, affects teams in AI infrastructure and research. Employees will receive severance pay and can apply for new positions until their end date on Nov. 21. CEO Mark Zuckerberg aims to improve AI momentum amid competition with OpenAI and Google, following a significant investment in Scale AI. Meta's projected expenses for 2025 have increased, with AI spending expected to drive growth in 2026.
Meta Platforms, Inc. (NASDAQ:META) confirmed on Wednesday that about 600 roles will be eliminated from its artificial intelligence division as part of an effort to streamline operations and become more agile.
- META stock is moving. See the real-time price action here.
Job Cuts
The decision was disclosed in an internal memo from Chief AI Officer Alexandr Wang, who joined the company in June following Meta's $14.3 billion investment in Scale AI.
The layoffs will affect staff in AI infrastructure, Fundamental Research and product-related teams, according to Axios.
Some employees were informed Wednesday that their official end date is Nov. 21. Until then, they will remain on a nonworking notice period without system access, but can apply for new internal positions.
Meta will provide 16 weeks of severance pay plus two additional weeks for each full year of service, minus the notice period.
AI Strategy
The company has been restructuring its AI strategy to compete with OpenAI and Google, investing heavily in computing resources and hiring.
CEO Mark Zuckerberg has expressed dissatisfaction with Meta's AI momentum, particularly after the lukewarm reception of the Llama 4 models launched in April.
Following the Scale AI deal, he introduced Meta Superintelligence Labs, led by Wang and former GitHub CEO Nat Friedman.
In July's earnings update, Meta projected 2025 expenses between $114 billion and $118 billion, raising its earlier forecast and noting that AI spending will drive even higher growth in 2026.
The company is set to report its third-quarter results next week.
- Elon Musk Says Head Of NASA Has ‘2 Digit IQ’ — SpaceX’s Moon Deal Hangs In Balance
Photo: Shutterstock
