Meta Platforms Inc. is implementing a broad corporate restructuring that includes the layoff of approximately 8,000 staff, representing 10% of its workforce. These cuts, which began with emails sent to impacted employees in Asia on May 20, are intended to reduce costs and improve efficiency to offset the company's heavy investments in artificial intelligence.
As part of this shift to become an AI-first company, Meta is reassigning about 7,000 workers into new artificial intelligence roles. A memo from Chief People Officer Janelle Gale detailed that these employees will be consolidated into four new organizations focused on AI agents, apps, and infrastructure.
The restructuring is designed to create a flatter organization with smaller teams. Alongside the layoffs, Meta has canceled hiring plans for 6,000 roles. This strategic pivot occurs as the parent company of Facebook and Instagram invests huge sums of money in AI, despite lagging behind its competitors.