Meta on Wednesday – about 10 per cent of its global workforce – as the company shifts its resources towards its artificial intelligence ambitions. As the axe fell on Meta employees at around 4 am, starting from Singapore, CEO Mark Zuckerberg sent a formal email to his staff, addressing the layoffs and thanking those who have been sacked for their work. The memo was also a little reassuring for those remaining after sweeping firings – more layoffs were not expected this year.
“Success isn’t a given. AI is the most consequential technology of our lifetimes,” Mark Zuckerberg wrote, adding, “The companies that lead the way will define the next generation,” as he sought to reassure those remaining.
‘I feel the weight’ – Zuckerberg
Addressing the layoffs, Mark Zuckerberg said, “It’s always sad to say good-bye to people who have contributed to our mission and to building this company.”
“I feel the weight of that.”
Zuckerberg said he did not expect additional company-wide layoffs this year, and acknowledged the company had fallen short in its communications with staff.
He struck an optimistic tone about the company’s direction, saying Meta was “one of the few companies positioned to help define the future” and reaffirming his goal of delivering “personal superintelligence” to users worldwide.
“This is the most dynamic I have seen our industry. We’re transforming our company to make sure it will always be the best place for talented people to have the greatest impact,” he said.
The restructuring is the largest company-wide round of cuts since Zuckerberg’s 2022-2023 “Year of Efficiency” campaign, which eliminated roughly 21,000 positions.
The move comes as Meta dramatically ramps up spending on AI infrastructure.
How Meta layoffs happened
Earlier on Wednesday, Meta started sending emails to those employees who were being laid off as part of previously announced and anticipated restructuring plans aimed at reducing costs while the company invests heavily in artificial intelligence.
The company . The US-based staff received word during their morning. Just ahead of the layoff emails were shot to selected employees, the company staff was encouraged to work from home.
On Monday, Meta had moved some 7,000 workers to newly formed teams that are focused on AI initiatives, including products and agents.
Will cost-cutting payoff?
While Meta has framed the layoffs as an opportunity to “offset” the cost of some of its major AI investments, analysts at Evercore estimate the cuts will generate only about $3 billion in savings. But Meta’s projected expenditure this year could go as high as $145 billion as it doubles down on its AI push, and the additional hundreds of billions that the company anticipates spending on AI infrastructure before the end of the decade.
(With agency inputs)