Meta cuts hundreds of employees and continues to increase investment in AI

According to the New York Post, Meta is laying off hundreds of employees in Silicon Valley while the tech giant is heavily investing in artificial intelligence and considering cutting more than 20% of its total workforce. According to the latest state government filings, the parent company of Facebook will lay off nearly 200 employees in the San Francisco Bay Area. The layoffs will affect 124 employees in Burlingame, California, and 74 employees in nearby Sunnyvale. The documents indicate that these layoffs will take effect in late May, and all affected positions will be permanently eliminated.

Experts say this move indicates that Meta is undergoing a major strategic transformation—from a labor-intensive operational model to a machine-driven system. Meta's recent AI-related initiatives include plans to invest $10 billion in building data centers in El Paso, Texas.

Meta is also considering larger layoffs. Senior employees have been informed to prepare for layoffs that could affect more than 20% of the company's workforce—about 15,000 employees. In response to this plan, a Meta spokesperson stated, "This is speculative reporting about a theoretical proposal."

If the layoffs proceed, it would be the largest layoff at Meta since more than 20,000 employees were cut during Zuckerberg's push for the company's "year of efficiency" in 2022 and 2023. In a Meta earnings call, Zuckerberg stated that due to the application of AI tools, Meta has begun to "see projects that previously required large teams now being completed by a very talented individual."