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Key takeaways
- Meta is reportedly laying off about 600 employees in its AI division amid an ongoing reorganization, according to a report by Axios.
- The company is still recruiting for other roles in the unit, and is encouraging affected employees to apply for other roles internally.
Booming profits and demand for artificial intelligence haven’t stopped Meta (META) from laying off employees.
The parent company of Facebook and Instagram is cutting about 600 roles in parts of its superintelligence labs led by Alexander Wang. Axios reported on Wednesday, though the company continues to hire for other AI-related positions at the unit.
According to the report, the company’s newly formed “TBD Lab” unit at the company’s Superintelligence Labs — which includes several prominent AI employees plucked from other companies in recent months — has been spared layoffs.
Meta did not respond to Investopedia Comment requested in time for publication.
Why is this important?
Meta’s move comes after a wave of recent layoffs at Big Tech peers such as Microsoft and Alphabet, Google’s parent company, which has contributed to concerns about AI-led impacts on the labor market. Companies are in some cases reducing their workforce as pressure grows to cut costs where possible as they dramatically increase spending on artificial intelligence, while some predict that advances in technology could reduce the need for workers over time.
Meta is said to be encouraging employees who have received notice to apply for other positions internally, and expects many of them will be absorbed into other departments.
Last July, CFO Suzanne Lee told investors that Meta planned to increase overall headcount through 2026 after a large round of layoffs earlier in the year, according to a transcript provided by AlphaSense, though the company moved to freeze AI hiring in August amid concerns about rising costs.
Meta, which is scheduled to report earnings next Wednesday, is not the only big tech giant to make cuts this year. Several of its Big 7 peers, including Microsoft (MSFT), Alphabet (GOOGL), Google’s parent company, and Amazon (AMZN), have undergone layoffs in recent months even as their revenues have risen. This adds to concerns that increased spending on artificial intelligence may prompt major technology companies to announce more job cuts in an attempt to maintain profit margins.
Meta shares closed slightly higher on Wednesday. They have added nearly a quarter of their value in 2025.
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