Meta Layoffs AI: Why Is Mark Zuckerberg Cutting Hundreds Of Jobs From Its AI Division? Chief AI Officer Alexandr Wang Gives This Reason

Meta Layoffs AI: Meta is set to cut around 600 jobs from its artificial intelligence (AI) unit, despite an earlier multi-billion dollar hiring spree led by CEO Mark Zuckerberg. The job reductions were confirmed by a Meta spokesperson to CNBC on Wednesday.

The layoffs, announced in a memo from Meta’s Chief AI Officer Alexandr Wang, will affect employees in the company’s AI infrastructure units, the Fundamental Artificial Intelligence Research (FAIR) division, and other product-focused roles.

Why Is Meta Laying Off Employees From AI Unit?

In his memo to staff, Wang explained the reasoning behind the decision, emphasizing efficiency and streamlined decision-making.

“By reducing the size of our team, fewer conversations will be required to make a decision, and each person will be more load-bearing and have more scope and impact,” Wang wrote.

Bloomberg reported that Meta is encouraging employees impacted by the layoffs to apply for positions in other departments. The report also noted that hiring for AI teams is expected to continue despite the cuts. The job reductions were first reported by Axios.

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Meta Freezes AI Hiring Earlier This Year

The layoffs come in the context of broader changes to Meta’s AI hiring strategy. On August 20, the Wall Street Journal reported that Meta had frozen hiring for its AI division.

A Meta spokesperson told Reuters about the freeze, “All that’s happening here is some basic organisational planning – creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”

‘Bloated’ AI Division

CNBC reported that the layoffs will not affect employees in TBD Labs, a newer division comprising many high-profile AI experts hired earlier this year. Overseen by Wang, TBD Labs remains intact, reflecting CEO Mark Zuckerberg’s confidence in the company’s newest recruits over longer-serving staff.

According to the report, parts of Meta’s AI division, including FAIR, had become “bloated,” with teams often competing for computer resources with more product-oriented groups. When new hires joined to establish Superintelligence Labs, the existing Meta AI unit was absorbed, adding to the department’s size.

Meta’s Aggressive AI Hiring

The layoffs occur amid Meta’s aggressive push in the AI race, as the company competes with rivals such as OpenAI and Alphabet Inc.’s Google. Meta has invested heavily in AI talent, including a $14.3 billion acquisition of data labeling startup Scale AI, which brought Wang to Meta to lead its AI efforts.

In July, Zuckerberg addressed reports about high pay packages for AI hires in an interview with The Information. He called claims about million-dollar compensation for Meta’s Superintelligence team “inaccurate” but acknowledged the competitive nature of the market:

“When asked about the alleged ‘$100–200 million’ pay packages for Meta’s ‘Superintelligence’ AI team, he described it as a ‘hot market,’ adding that it makes sense to spend big to secure the right talent.”

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