Mark Zuckerberg. Credit: Mijansk786 / Shutterstock.com
US tech giant Meta, which owns Facebook, Instagram and WhatsApp, plans to cut about 600 jobs in its artificial intelligence (AI) division, according to an internal memo cited by US media.
The layoffs will affect Meta’s so-called “superintelligence lab,” which covers the company’s major AI projects. The department employs several thousand people, but exact numbers remain unclear. The move is aimed at “keeping pace with competitors” and streamlining internal operations following three years of rapid AI expansion, according to reports from Axios and The New York Times.
The layoffs are aimed at “relieving organizational overload caused by the rapid development of Meta’s AI initiatives,” according to the New York Times. Axios added that the memo emphasizes that the reorganization will “reduce the conversations needed to make decisions” and give employees “greater responsibility, scope and influence.”
Fierce competition in the AI race
The layoffs come amid fierce competition in the artificial intelligence field. Since ChatGPT’s debut in 2022, companies like OpenAI, Google, and Microsoft have been racing to develop next-generation chatbots and AI-powered products.
Microsoft has poured over €12.1 billion into OpenAI, and Amazon has invested €7.4 billion into AI startup Anthropic.
Meta founder and CEO Mark Zuckerberg launched the company’s first AI lab in 2013, shortly after losing a bid to acquire DeepMind, a British startup that would become Google’s AI hub.
Earlier this year, reports revealed that Zuckerberg was assembling a new “superintelligence” team tasked with building the world’s most advanced AI platform, one that could surpass human cognitive abilities.
Balancing headcount reductions and new hires
Despite the layoffs, Meta continues to hire high-profile AI talent. Among the latest hires is Alexandr Wang, 28, founder and former CEO of Scale AI, a San Francisco-based startup specializing in data labeling for large-scale language models. Meta reportedly invested €13.3 billion in Scale AI earlier this year.
The company also expanded its infrastructure, developed new data centers and hardware such as AI-powered smart glasses, and launched an AI assistant app.
However, the rise of automation has raised concerns among employees across the technology industry, many of whom fear their roles will be replaced by AI.
Meta has been making adjustments to its workforce in recent months, both through layoffs and hiring. As of June 30, the company had 75,945 employees, an increase of 7% from the previous year.