Meta slashes 8,000 jobs as it pivots towards AI

Meta, the parent company of Facebook, Instagram, and WhatsApp, is cutting approximately 8,000 jobs in May as part of a major reorganization aimed at accelerating its focus on artificial intelligence. The layoffs were confirmed by spokesperson Erica Sackin, who stated that affected employees have already been notified. An internal memo from last month detailed the 10% workforce reduction. Additionally, 7,000 employees will have their roles reassigned to AI-focused teams, according to a source familiar with the situation. Reuters first reported the reassignments, noting that these employees will join four new teams developing AI tools and apps. Meta has not confirmed which teams are expanding or shrinking as a result. The restructuring aligns with Meta’s broader push into AI, a sector where the company trails competitors like OpenAI, Anthropic, and Google. The company has significantly increased capital expenditures this year, nearly doubling last year’s spending to support its AI ambitions. This shift comes amid broader tech industry layoffs as companies prioritize AI development. Meta’s pivot away from AI follows a challenging period for the company. Earlier this year, it faced legal defeats in New Mexico over claims that its platforms harm children’s mental health. In June, Meta will return to court in a lawsuit involving school districts that accuse social media companies of contributing to mental health crises and addiction among students. The company has also scaled back its Metaverse initiative, which CEO Mark Zuckerberg once positioned as its future. The layoffs and restructuring reflect Meta’s strategic realignment, focusing resources on AI while addressing legal and market pressures. The company’s move underscores the competitive stakes in the AI race, where investments and talent acquisition are critical to success.