Meta has initiated a significant round of layoffs, impacting approximately 4,000 employees globally as part of CEO Mark Zuckerberg’s strategy to enhance efficiency and focus on artificial intelligence (AI) investments.
This move aligns with a broader trend in the tech industry, where companies like Microsoft and Amazon are also downsizing after pandemic-era hiring surges.
The layoffs affect about 5% of Meta’s workforce across regions including the US, Europe, and Asia. As reported, employees in countries like Germany and France are exempt from immediate layoffs because local labour laws require different performance management processes.
The layoffs primarily target underperforming employees as identified by company executives. Notifications have been sent out via email across regions including the US, Europe, and Asia
Affected US employees will receive a severance package that includes 16 weeks of pay plus two additional weeks per year of service.
Meta is aggressively investing in AI infrastructure with plans to spend between $60 billion and $65 billion by 2025. This investment aims to establish Meta as a major player in the AI sector by developing advanced data centres capable of housing over 1.3 million GPUs.
Key Components of Meta’s AI Strategy
- Data Center Expansion: A massive data centre expansion is planned, requiring over two gigawatts of power—enough for entire neighbourhoods.
- GPU Deployment: Over 1.3 million GPUs will be deployed by the end of 2025.
- AI User Base Goal: Zuckerberg aims to have one billion users on Meta’s AI platforms by 2025.
This strategic shift follows years focused on metaverse development but now prioritizes competing with other tech giants like OpenAI and Microsoft in the rapidly evolving field of artificial intelligence
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