Meta lays off 5% global workforce in AI pivot

Facebook and Instagram owner Meta is cutting 5% of its workforce (roughly 4,000 employees) in the US, Europe and Asia, according to Business Insider. The move comes as it focuses on efficiency and cost-cutting to support billions of dollars in AI investments.

In a January memo, CEO Mark Zuckerberg said he would “raise the bar” and remove low performers. Affected employees in America will receive 16 weeks of severance pay plus two weeks per year of service.

Meta is also reorganizing some of its businesses. It is merging Facebook and Messenger teams and reintegrating the Reality Labs division, which has lost nearly $60 billion since 2020.

Not just Meta
Several Big Tech firms that went on a pandemic hiring spree, including Microsoft, Amazon, and Salesforce, are removing thousands of employees. They are also focusing on new hires for their AI products.

As companies focus on the generative AI race, they try to find ways to fund the billions of dollars the technology’s infrastructure is costing them.