Meta to Cut 8,000 Jobs: Zuckerberg Blames AI Spending and Workforce Optimization

Meta will reduce its workforce by 10%, impacting approximately 8,000 employees out of a total of 78,000. The decision follows a recent internal Q&A session with CEO Mark Zuckerberg, who provided insights into the company’s downsizing strategy.

Zuckerberg’s Rationale: AI Spending and Workforce Optimization

According to a Wall Street Journal report, Zuckerberg attributed the layoffs to significant investments in AI infrastructure and data center capacity. He explained that the company’s resources are divided between two primary cost centers: compute and infrastructure (such as GPUs and chips) and people-oriented functions.

“We [basically] have two cost centers in the company. There’s [compute and infrastructure] and there’s people-oriented things, and if we’re investing more in one area to serve our community, then that means that we have less capital to basically allocate to the other. So that means that we do need to take down the size of the company somewhat.”

Zuckerberg also highlighted inefficiencies in team sizes, noting that some teams no longer require the same number of employees as in the past. He stated, “If a team used to take 50 or 100 people and now it takes 10, having 50 or 100 people on that team can actually be counterproductive going forward—so I think we need to fix that.”

Employee Morale and Future Workforce Plans

Employee sentiment at Meta has declined in recent months, with posts containing negative sentiment on the anonymous workplace platform Blind quadrupling since 2024, according to data reviewed by Fast Company.

In response, Meta pointed to its Thursday earnings call, where CFO Susan Li emphasized the company’s focus on leveraging AI tools to enhance productivity. Li also addressed the company’s evolving workforce needs, stating, “We are very focused on leveraging AI tools to boost productivity and still navigating the company’s future ‘optimal size.’”

Li acknowledged that while layoffs would reduce employee compensation costs compared to the previous quarter, restructuring expenses would offset these savings within the year.

Meta’s Strategic Shift: Building More Apps

Zuckerberg outlined Meta’s future direction, emphasizing a shift toward developing additional applications. He noted, “Historically, we’ve built like four or five big apps. We want to build a lot more apps, so there’s a bunch of stuff that we’re trying to figure out, and some of this we just need to figure out over time.”

Uncertainty Over Further Layoffs

During the Q&A, Meta’s chief people officer, Janelle Gale, addressed concerns about additional workforce reductions. According to Business Insider, Gale stated, “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 added, “While the business is strong, priorities change, competition is fierce, and we will continue to manage our costs responsibly.” She also mentioned that Meta would “continue to evolve teams as needed” and “try to redeploy talent.”

Potential for Larger Workforce Cuts

A March report from Reuters suggested that Meta could reduce its workforce by nearly 20% in 2025.

Zuckerberg also acknowledged ongoing challenges, including external headwinds, though the full context of his remarks was not provided in the available report.