Meta Lays Off Thousands As It Pivots To Ai

Menlo Park is gonna need to stock up on cardboard boxes. Meta began a round of layoffs yesterday affecting roughly 4,000 people, or 5% of its workforce, as the company follows the well-trodden path of tech companies diverting their resources toward AI.

CEO Mark Zuckerberg warned the layoffs were coming last month in an internal memo, where he said he would “raise the bar” and “move out low-performers faster,” warning that 2025 would be an intense year. The company is now looking to ramp up its hiring of machine-learning engineers, per Business Insider.

Tech layoffs for spring? Groundbreaking

Meta joins a laundry list of tech companies that have recently laid off workers in the name of AI investment.

• Last week, Workday cut 1,750 jobs or ~8.5% of its staff to prioritize AI.
• Salesforce is reportedly laying off more than 1,000 people at the same time that it’s increasing hiring of salespeople for its AI products.

Meanwhile, Google is offering buyouts to employees that work on its platforms and devices teams as the company is expected to announce cuts that prioritize AI.

Zoom out: The AI pivot is a gamble of gargantuan proportions. Combined capital expenditures on artificial intelligence among Amazon, Microsoft, Google, and Meta are set to pass $320 billion this year, even as investors fear cheaper models could steal their thunder.—CC