Meta lays off 8,000 employees to focus on AI
What's the story
Meta Platforms has confirmed plans to lay off nearly 8,000 employees or about 10% of its workforce. The move comes as part of the company's strategy to focus more on artificial intelligence (AI). The layoffs will start from May 20 and coincide with the cancellation of hiring for around 6,000 open positions.
Strategic pivot
Layoffs part of Meta's restructuring strategy
The decision to lay off employees is part of Meta's larger restructuring strategy. The company wants to focus more on generative AI, an area where it has been lagging behind competitors like OpenAI, Google, and Anthropic. This isn't the first time Meta has made such a move; it previously cut around 10% of its metaverse staff in January and hundreds more across various teams in March.
Operational changes
Shift toward AI-driven content moderation
Along with the layoffs, Meta is also reducing its reliance on third-party contractors. The company plans to use AI-driven systems for content moderation instead of human workers. This move comes as part of a broader trend in the tech industry where companies are reshaping their strategies in response to the growing importance of AI technology.
Workforce trends
Decline in Meta's workforce
Meta's workforce has been declining since the pandemic-era hiring boom. The company had 78,865 employees at the end of December, down from 86,482 a year ago. This is a far cry from its headcount of 58,604 at the end of 2020. CEO Mark Zuckerberg is leading these changes with a focus on strengthening Meta's AI capabilities.
AI developments
Meta's push to strengthen AI capabilities
This month, Meta unveiled a new flagship AI model after hiring Scale AI founder Alexandr Wang. The company is also ramping up internal efforts to build AI systems. Employees were recently informed about a new tracking system called the Model Capability Initiative, which will collect data from their activity on work devices for training and improving AI agents.