Meta to eliminate 5% of staff in shift to AI and AR development

Meta has announced plans to cut 5% of its workforce, approximately 3,600 employees, as part of a strategic shift to prioritize artificial intelligence and augmented reality development.

Strategic reshaping: Mark Zuckerberg is implementing performance-based cuts to create space for new talent focused on AI innovation and smart glasses development.

• Employees deemed as “low performers” will be notified by February 10 and receive generous severance packages
• The company will retain some underperforming employees if management sees potential for future improvement
• This represents Meta’s largest workforce reduction since 2023’s “year of efficiency” cuts

Performance management overhaul: Zuckerberg aims to accelerate the process of removing underperforming employees, departing from the traditional year-long management approach.

• The company’s September 2023 headcount stood at approximately 72,000 employees
• Previous layoffs in 2023 eliminated 21,000 positions across two rounds
• Meta’s CEO noted that previous workforce reductions surprisingly led to increased operational speed

Technology focus: Meta is prioritizing development in three key areas that will shape its future direction.

• AI integration across platforms and products
• Smart glasses development, which Meta views as an “AI-native device“
• Evolution of social media platforms with AI and AR capabilities

Recent challenges: Meta’s AI initiatives have faced some setbacks and controversies.

• Instagram users recently criticized the platform’s AI-powered characters
• Legal challenges have emerged regarding Meta’s AI training practices, including allegations about using pirated books
• The company faces employee pushback regarding the new round of cuts

Future vision: Meta is positioning itself for significant technological advancement in 2025.

• The company plans to develop proactive AI assistants that go beyond simple prompt responses
• Integration of AI capabilities with smart glasses remains a key priority
• Meta aims to redefine social media through combined AI and AR technologies

Reading between the lines: While Zuckerberg frames these cuts as performance-based, they appear to be part of a larger strategic pivot toward AI and AR technologies, potentially indicating that many current employees’ skills may not align with Meta’s future direction. The repeated rounds of layoffs, despite previous “efficiency” measures, suggest ongoing organizational restructuring rather than purely performance-related issues.