Meta will cut 10% of workforce as it pushes more into AI

Meta has confirmed plans to reduce its workforce by 10%, amounting to approximately 8,000 employees, as the company intensifies its investment in artificial intelligence. This significant job cut initiative will commence on May 20 and will also involve halting the recruitment for 6,000 vacant positions, as outlined in a memo to staff, which was initially reported by Bloomberg News. This latest wave of layoffs is part of a broader strategy aimed at enhancing efficiency while shifting the company's focus toward generative AI. Meta faces stiff competition from industry leaders such as OpenAI, Google, and Anthropic, prompting this strategic pivot. Earlier this year, Meta had already laid off about 10% of its staff involved in metaverse-related projects within its Reality Labs division. Reports indicated that around 1,000 employees were affected, particularly those working on Quest-branded virtual reality headsets, VR content, and the Horizon Worlds social platform. As a result of these announcements, Meta's stock has seen a decline of approximately 2.4% during midday trading, dropping to $658.40. The company's aggressive push into AI comes amid a rapidly evolving tech landscape, where capital expenditures in AI are expected to remain high despite economic pressures.