Meta Initiates Large-Scale Layoffs to Pivot Towards AI Talent Acquisition

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On Tue, 11 Feb, 12:06 AM UTC

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Meta begins a significant round of layoffs, targeting underperforming employees to make room for AI talent, as part of its strategic shift towards artificial intelligence development.

Meta Initiates Large-Scale Layoffs

Meta Platforms, the parent company of Facebook, has begun a significant round of layoffs, targeting approximately 5% of its workforce or around 3,600 employees 1. The company started notifying affected staff on Monday, February 10, 2025, through emails sent to both personal and professional addresses 2.

Strategic Shift Towards AI Talent

This move is part of Meta's strategic shift to prioritize artificial intelligence development. CEO Mark Zuckerberg has indicated that the layoffs are focused on "low-performers" who "aren't meeting expectations" 1. The company aims to create headcount for hiring "strongest talent" in the AI field, as it seeks to compete with rivals like OpenAI and DeepSeek in the rapidly evolving AI landscape 5.

Severance Packages and Employee Impact

US-based employees affected by the layoffs will receive severance packages that include 16 weeks of salary, plus an additional two weeks for each year of service 2. Employees who earned bonuses during the current review period will still receive them, and stock awards will be distributed as part of the upcoming vesting cycle 5.

Global Impact and Timeline

The layoffs are expected to affect employees across the United States, Europe, and Asia 3. While US employees were notified on February 10, international employees may learn of their status later. Employees in certain European countries, including Germany, France, Italy, and the Netherlands, will not be included in the staffing cuts due to local regulations 4.

Performance-Based Cuts and Industry Trend

The job cuts are designed to target employees who received the bottom two ratings in Meta's assessment system: "met some" or "did not meet" expectations 4. This approach aligns with a broader trend in the tech industry, as companies like Microsoft, Amazon, and Salesforce are also implementing significant workforce reductions to streamline operations 4.

AI Investment and Future Plans

Meta has announced plans to invest over $65 billion in AI development, which is more than a 50% increase compared to the previous year 2. Zuckerberg told investors in late January that Meta anticipates eventually spending hundreds of billions of dollars on AI infrastructure 1. The company is applying AI across its range of apps and business units, from social media platforms to virtual reality glasses.

Employee Concerns and Company Culture

Some employees have expressed concerns about the impact of these changes on company culture. An anonymous Meta worker told Business Insider, "Mark is creating fear. He's creating a culture where you have to be loyal to him or else. Self-censorship is rampant" 3. This sentiment reflects the tension between Meta's efficiency drive and its stated mission of connecting people.

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