Meta to lay off 8,000 employees on May 20; Internal memo reveals AI restructuring plans

Meta, the renowned social media powerhouse, is set to execute a significant workforce reduction this week as it pivots towards substantial investment in artificial intelligence (AI). An internal memo shared with employees on May 18 outlined the restructuring plans, which include layoffs scheduled for May 20. According to reports from Reuters, the layoffs will impact teams worldwide, not just in the United States. The company revealed that it intends to reduce its workforce by 10%, translating to nearly 8,000 positions. This strategic move is aimed at enhancing efficiency and reshaping team structures to better align with AI development and AI-driven products. In a message to employees, Meta’s Chief People Officer, Janelle Gale, indicated that the company is also planning to reassign approximately 7,000 workers to focus on projects related to AI development and operations. This shift will involve a reduction of middle-management roles, fostering a flatter organizational structure that promotes faster decision-making and greater ownership among teams. Gale emphasized that as leaders implemented these changes, many incorporated AI-native design principles into their new organizational frameworks. "We’re now at the stage where many organizations can operate with a flatter structure with smaller teams of pods/cohorts that can move faster and with more ownership," she stated. The employees being reassigned will likely join Meta’s Applied AI Engineering (AAI) and Agent Transformation Accelerator (ATA) cross-functional teams, initiatives introduced by CTO Andrew Bosworth as part of the company’s broader "AI for Work" strategy. This expansion reflects Meta's ambition to leverage AI not only in consumer-facing products but also internally to boost productivity and efficiency. Additionally, Gale mentioned an upcoming initiative titled “Enterprise Solutions,” which is expected to be unveiled soon. In a previous communication, she informed staff about the closure of an additional 6,000 job openings as part of the restructuring efforts. With a total workforce of 77,986 employees as of late March, Meta anticipates cutting around 20% of its staff within the year.