Meta just told staff in an internal meeting that it isn't ruling out further layoffs

In a recent internal meeting, Meta's chief people officer, Janelle Gale, informed employees that the company is planning to lay off approximately 10% of its workforce next month, and she did not dismiss the possibility of additional cuts in the future. "Will there be more layoffs? The question always comes up. I'd love to say that there are no more layoffs, but I can't say something we can't deliver," Gale conveyed to the staff, as reported by three sources on the call. Gale emphasized that while Meta's business remains robust, changing priorities and intense competition necessitate prudent cost management. As part of this strategy, she mentioned that the company would continue to adapt its teams and seek to redeploy talent where possible. Notably, Gale highlighted Meta's commitment to investing in its Applied AI organization. During the meeting, it was also clarified that the utilization of AI tokens would not influence decisions related to layoffs. CEO Mark Zuckerberg addressed the topic, stating that AI automation is not the primary reason for the job cuts, although he acknowledged that AI has enhanced the efficiency of smaller teams. Zuckerberg further elaborated on Meta's initiative to monitor employee keystrokes and mouse movements to refine its AI models, assuring the team that this monitoring is abstracted and does not involve direct observation of individual activities. Alexandr Wang, Meta's AI Chief, also participated in the meeting, showcasing the company's recent advancements in AI, particularly the launch of its Spark model. Despite the challenging circumstances, Gale noted that layoffs have impacted employee morale, and the company aims to manage these situations as sensitively as possible. To support affected employees, Meta has expanded COBRA healthcare coverage to 18 months. Additionally, CFO Susan Li remarked during the first quarter earnings call that the company is uncertain about the optimal headcount, which currently exceeds 77,000. As part of its growth in AI, Meta announced plans to double its infrastructure spending this year, estimating an expenditure of between $125 billion and $145 billion.