Meta, the operator of the social media platforms Facebook and Instagram, will cut about 10% of its workforce. The move is seen as aimed at expanding investment in artificial intelligence (AI).
On the 23rd (local time), according to foreign media including CNN and The New York Times (NYT), Meta said it plans to lay off about 8,000 employees that day. The layoffs are scheduled to take effect starting on the 20th of next month.
New hiring will also be reduced. Meta decided to eliminate 6,000 positions it had planned to fill. After the news broke, Meta shares fell more than 2% at one point during intraday trading on the New York Stock Exchange.
Meta Chief People Officer (CPO) Janelle Gale said the move is "to run the company more efficiently and to cover other investment expense we have underway."
Meta has been aggressively increasing its investment in AI. Last year, it invested $72.2 billion (about 107 trillion won) to build AI infrastructure such as data centers, and this year it plans to expand that to at least $115 billion (about 170 trillion won). It is also focusing funds on securing talent and acquiring promising AI startups.
Across the tech industry, workforce restructurings tied to AI adoption are continuing. Microsoft has moved to reduce headcount by offering an early retirement program to long-tenured employees. CPO Amy Coleman said in an email to employees that the move is part of streamlining the organization amid increased AI investment. The target is said to be about 7% of its U.S. workforce (about 125,000 people).
Amazon announced 16,000 layoffs in January, and Fintech corporations Block also disclosed plans in February to cut more than 4,000 people, equivalent to 40% of its total workforce.
Meta Chief Executive Officer (CEO) Mark Zuckerberg has repeatedly said AI technology will reshape the workforce. On an earnings conference call in January, he called this year "the year when AI begins to dramatically change how we work," adding, "We are beginning to see projects that once required large teams now being completed by a single very talented person."
Meta plans to offer U.S. employees affected by the layoffs 16 weeks of base pay plus additional compensation based on years of service. It plans to apply a similar package to overseas employees.
Earlier, citing the need to normalize the surge in headcount during the COVID-19 pandemic, Meta cut tens of thousands of jobs in 2022–2023. Last year, it also reduced about 5% of its workforce, focusing on underperformers.