Meta is reshaping its workforce in a sweeping effort to prioritize artificial intelligence. In an internal memo seen by Reuters and The New York Times, HR head Janelle Gale told staff that 7,000 employees will be transferred to four new AI‑focused organizations tasked with building the next generation of tools and applications. Gale described the restructuring as a way to make the company more productive and to make work more rewarding for employees.
AI‑centric reassignments
The four new units will operate under what Gale calls "AI native design structures," meaning they will have flatter hierarchies and fewer layers of management per employee. By reducing bureaucratic overhead, Meta hopes to accelerate development cycles and better integrate AI across its product portfolio. Employees were asked to work from home on Wednesday, May 20, and to await email notifications about their new positions. Some workers had already been moved to the new groups before the memo was circulated.
Layoffs and broader cost cuts
Alongside the reassignments, Meta will lay off 8,000 workers this week. The company had warned staff in late April that it planned to cut 8,000 jobs and close 6,000 open positions as part of an ongoing effort to run the business more efficiently and to offset other investments, principally in AI. Those affected will receive 16 weeks of severance pay, plus an additional two weeks for each year of service.
The layoffs represent roughly 10 percent of Meta’s workforce, which is projected to stand at about 78,000 employees by the end of 2025. Reuters reports that further reductions may follow later in the year. Meta’s shift mirrors a broader trend in the tech sector, where companies are trimming staff to funnel resources into artificial‑intelligence research and development.
Meta’s AI push follows a strategic retreat from its metaverse ambitions. The firm is planning to build data centers capable of delivering "tens of gigawatts" of power within the decade and has assembled a "superintelligence" team of AI experts. CEO Mark Zuckerberg has personally recruited talent for the group, even inviting candidates to his home. The company is also integrating AI agents and a chatbot into several of its products. According to The New York Times, Zuckerberg told investors that Meta intends to spend between $115 billion and $135 billion this year, most of it on AI initiatives.
While the reassignments signal a commitment to AI, the simultaneous layoffs underscore the difficult choices the company faces as it reallocates capital. Employees now find themselves at a crossroads: some will transition into fast‑growing AI units, while thousands will receive severance as Meta tightens its belt. The dual approach reflects a broader industry reality—tech firms are betting heavily on artificial intelligence, even as they reduce headcount to fund those bets.
This article was written with the assistance of AI.
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