Meta Restructures AI Division with Hundreds of Layoffs Following Aggressive Hiring

Major Workforce Reduction in AI Unit

Meta Platforms is eliminating approximately 600 positions from its artificial intelligence division, specifically targeting its Superintelligence lab, according to reports from Axios. The significant workforce reduction comes despite CEO Mark Zuckerberg’s personal involvement in an aggressive hiring campaign earlier this year that offered multi-year contracts worth up to $1 billion to attract top AI talent.

Major Workforce Reduction in AI Unit
Streamlining Decision-Making Processes
Contradictory Hiring Patterns
Ongoing Organizational Shifts
Selective Talent Acquisition Continues
Substantial Ongoing AI Investments

Streamlining Decision-Making Processes

Meta AI chief Alexandr Wang explained the rationale behind the cuts in an internal memo obtained by Axios. “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,” he wrote. Sources indicate this restructuring aims to create a more efficient organizational structure within the company‘s broader AI department.

Contradictory Hiring Patterns

The layoffs present a contrasting picture to Meta’s recent AI expansion efforts. In June, the company reportedly paid $15 billion for a 49% stake in Scale AI, bringing on then-CEO Wang to lead Meta’s AI initiatives and integrating numerous staff from the acquisition. Just last month, Zuckerberg announced the creation of the Superintelligence lab with ambitious but vaguely defined goals to develop technology that “helps you achieve your goals.”

Despite the current cuts, the report states that Meta continues to hire for its recently established TBD Lab, which focuses on next-generation AI models. The company is reportedly encouraging affected Superintelligence lab employees to apply for other positions within the organization.

Ongoing Organizational Shifts

This represents the latest in a series of organizational changes to Meta’s AI division. According to previous reporting by the Wall Street Journal, the company had already frozen AI hiring in August as part of what it called “basic organizational planning.” At that time, Meta divided the Superintelligence team into four separate groups, including the TBD Lab that remains active.

Analysts suggest the restructuring reflects the turbulent nature of the current AI landscape, where companies are making massive investments while simultaneously seeking operational efficiency. The industry continues to search for sustainable revenue models to offset billions of dollars in development costs, with some experts warning of a growing AI bubble that could potentially impact the broader economy.

Selective Talent Acquisition Continues

Even as Meta reduces its overall AI workforce, the company reportedly continues targeted recruitment of high-profile individuals. Axios sources indicate Zuckerberg recently hired Thinking Machines cofounder Andrew Tulloch and OpenAI research scientist Ananya Kumar, suggesting a strategic shift toward quality over quantity in talent acquisition.

Substantial Ongoing AI Investments

Despite the workforce reductions, Meta appears committed to substantial AI infrastructure development. The company just this week announced a partnership with Blue Owl Capital on a massive $27 billion AI data center project, signaling that executives still view artificial intelligence as critical to the company’s future. Company leadership has maintained that the latest cuts do not represent a capitulation on AI efforts and that superintelligence development remains a top priority.

The mixed signals from Meta—simultaneously cutting staff while making enormous infrastructure investments—highlight the complex balancing act technology companies face in the competitive AI landscape. Whether Zuckerberg’s approach will position Meta to succeed in what analysts suggest could be an impending industry shakeout remains uncertain.