Meta Platforms Inc. is notifying thousands of employees of layoffs as part of a previously announced restructuring aimed at reducing costs while the company invests heavily in artificial intelligence. The global job cuts total approximately 8,000 roles, affecting workers across Asia, Europe, and the United States.
Global Layoffs Commence
The company notified employees worldwide on Wednesday, starting with staff in Asia at 4 a.m. Singapore time, followed by U.S.-based workers later in the morning. Chief Executive Officer Mark Zuckerberg posted internally that the firm does not expect other company-wide layoffs this year, emphasizing the need for better communication with employees.
In Ireland, Meta cut around 350 jobs, an estimated fifth of its workforce there, according to a person familiar with the matter. A Meta representative declined to comment on specific cuts but confirmed that affected employees and the Irish government have been notified.
Impact on Engineering and Product Teams
The latest round of cuts is expected to disproportionately affect Meta’s engineering and product teams, according to sources familiar with the company’s plans. Employees were encouraged to work from home during the layoff process. Meta had just under 80,000 employees at the end of March, before reassignments and layoffs.
AI Investment and Restructuring
On Monday, Meta informed staff that approximately 7,000 workers have been reassigned to newly formed teams focused on AI initiatives, including products and agents. The company has committed over $100 billion to AI capital expenditures this year. Zuckerberg expressed optimism about Meta’s position in the AI race, stating, “This is the most dynamic I have seen our industry.” He added that the company is transforming to ensure it remains the best place for talented people to have the greatest impact.
Criticism and Concerns
Jan-Emmanuel De Neve, professor of economics and behavioural science at the University of Oxford, criticized the move, saying, “Automators like Meta risk no longer being an employer of choice as it’s being revealed that they will cut out the human when the opportunity presents itself. Doing so might well lead to short-term cost savings but risks longer-term growth potential by undermining employee wellbeing and engagement.”
Meta’s Head of People, Janelle Gale, noted in a memo that many organizations can now operate with a flatter structure, using smaller teams of pods or cohorts that can move faster and with more ownership. “We believe this will make us more productive and make the work more rewarding,” she said.
