Meta Accelerates AI Pivot with 10% Workforce Reduction

Meta has announced a plan to reduce its global headcount by 10%, resulting in the loss of roughly 8,000 jobs. The layoffs, scheduled to begin on May 20, are part of a strategic realignment as the company aggressively pursues leadership in the generative AI space to better compete with rivals such as OpenAI, Google, and Anthropic. This latest round of cuts follows previous reductions in the metaverse-focused Reality Labs unit and a shift away from third-party content moderation vendors in favor of AI technologies. In addition to the layoffs, the company is scrapping plans to fill 6,000 open positions. Meta's global workforce stood at 78,865 as of December 31, a decrease from 86,482 in late 2022. The move mirrors a wider trend across the technology sector. Microsoft recently confirmed it would offer voluntary buyouts to approximately 7% of its U.S. employees, while Amazon previously announced the elimination of 16,000 corporate roles. These actions suggest a sector-wide reckoning as companies reallocate resources toward the AI boom. To further its AI objectives, Meta recently debuted a new AI model and introduced the Model Capability Initiative (MCI). This internal tool tracks employee keystrokes and mouse clicks to gather data necessary for training AI agents. Meta shares declined 2.4% following the announcement, with investors now awaiting the company's first-quarter earnings report scheduled for next Wednesday.