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Sunday, March 30, 2025  
29 Ramadan 1446  

Meta to lay off 4,000 employees amid AI investment strategy: report

Meta reallocates resources towards AI
Reuters/File
Reuters/File

Meta has announced significant layoffs, cutting approximately 4,000 jobs as part of CEO Mark Zuckerberg’s initiative to enhance efficiency and focus on artificial intelligence development.

Notifications have begun reaching affected employees across the US, Europe, and Asia, according to an internal memo obtained by Business Insider.

The move represents about five per cent of Meta’s total workforce, aligning with Zuckerberg’s previous warning that the company would tighten performance evaluations and address underperformance among employees.

The trend follows a broader pattern in the tech industry, where companies like Microsoft and Amazon are also reducing their workforce after a period of rapid hiring during the pandemic.

Despite being profitable, Meta is reallocating resources towards AI, necessitating significant infrastructure investments. Since Zuckerberg declared 2023 as the “year of efficiency,” Meta’s stock has surged, increasing its market value by over $1 trillion.

Affected US employees would receive a severance package that includes 16 weeks of pay plus an additional two weeks for each year of service. But many employees have expressed concerns about a pervasive culture of fear within the company, comparing the environment to a George Orwell novel.

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Meta is also restructuring its operations, merging teams for Facebook and Messenger and reassigning leadership within its AI division. The company’s Reality Labs division, which has been struggling financially due to its ambitious metaverse projects, is being integrated back into Meta’s core operations.

Employees in Europe, particularly in countries like Germany and France, are not facing immediate layoffs due to local labour laws, which require adherence to different performance management processes.

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