Far from the red-eyed admission of fault he gave when Meta conducted some of its first mass layoffs in 2022, on Wednesday, Zuckerberg dismissed 8,000 workers, or about 10% of its workforce, with a detached-sounding memo that emphasized that “success isn’t a given” in the AI race. As part of the restructuring this week, 7,000 employees were also set to be moved into AI-focused roles, several outlets reported.
“AI is the most consequential technology of our lifetimes,” Zuckerberg said in the memo. “The companies that lead the way will define the next generation.”
Zuckerberg said in the memo that the company doesn’t expect to conduct any other company-wide layoffs this year.
The company will be left with an estimated 71,000 employees after the layoffs, according to its most recent headcount number from December.
Of course, situations change, and the company is not in the same place as it was in 2022. Facing pressure to compete with the likes of AI heavy hitters like Anthropic, OpenAI, and Google, Meta is adjusting its approach to meet the moment.
In its first-quarter earnings reported late last month, Meta said it would spend between $125 billion and $145 billion on capital expenditures fueled by AI. The upper bound of that spending would be about double the $72 billion Meta spent on capex in 2025.
A spokesperson for Meta declined to comment to Fortune.
Meta is pouring billions into pursuing Zuckerberg’s plan to develop “personal superintelligence,” that allows anyone to “achieve your goals, create what you want to see in the world, experience any adventure, be a better friend to those you care about, and grow to become the person you aspire to be,” the CEO wrote in a public letter last summer.
Despite the job cuts, Meta, in its latest quarterly results, reported stellar numbers. Late last month, the company reported $56.3 billion in revenue for the first quarter, up an eye-popping 33% year-over-year, and the company’s largest year-over-year quarterly revenue increase in five years. Its first-quarter net income of $26.7 billion also outperformed analyst expectations.
Were the Meta layoffs expected?
The layoffs this week were, in a way, expected. In March, Reuters reported the company was preparing for “sweeping” layoffs partly to offset the mounting costs of AI infrastructure.
Still, some employees online complained about the recent trend to conduct more frequent layoffs and alleged the company has a cutthroat culture of competition.
“Imagine working on a team where every 6 months, one of you is going to get axed. Of course it’s going to become toxic,” wrote Jeremy Bernier, a laid-off senior software engineer at Meta, in a post on X.
Zuckerberg’s tune about layoffs changes
With this week’s layoffs, Meta has officially cut more than 30,000 employees since 2022. In that year, the company conducted the first of its major layoffs with 11,000 employees dismissed. At the time, Zuckerberg’s approach was more subdued.
“I got this wrong, and I take responsibility for that.” he said at the time.
Zuckerberg’s approach to layoffs evolved, however, when in 2023 he called for a “year of efficiency” and laid off another 10,000 workers and instituted a hiring freeze.
“This is going to be an intense year, and I want to make sure we have the best people on our teams,” he said when announcing the layoffs that year.
It’s not just Meta that is cutting employees as tech companies increase their AI spending. Cisco said earlier this year it plans to cut 4,000 jobs even as its revenue expectations increase due to a boost in orders from hyperscalers for the company’s networking technology.
Other companies such as fintech firm Block and social media company Snap have pointed to AI as a reason to conduct layoffs. In a note posted to X Thursday, Cloudflare CEO Matthew Prince said the company laid off 20% of its workforce earlier this month despite growing at a rate of more than 30% “because business is changing, and to win the future, Cloudflare needs to change with it.”
Zuckerberg, for his part, defended the layoffs in the memo this week. He said employees appreciate they can take “greater ownership” and “execute their vision” without bureaucracy.
“We’re transforming our company to make sure it will always be the best place for talented people to have the greatest impact,” Zuckerberg said in the memo.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: fortune.com
