Meta has begun cutting thousands of jobs as the social media giant tightens its stance on underperforming employees and prepares for another year of significant investment in artificial intelligence (AI).
The company is eliminating around 5% of its workforce, equating to nearly 4,000 jobs, with affected employees in Europe, Asia, and the US being notified, the Business Insider reported citing internal sources.
CEO Mark Zuckerberg had warned employees in January of his plans to “raise the bar” by swiftly removing low performers, a strategy outlined in an internal memo seen by BI. This marks a continuation of Meta’s broader effort to streamline its operations as part of a company-wide "year of efficiency" initiative that began in 2023.
Meta’s layoffs come as the company focuses on staying competitive in the rapidly growing generative AI sector. To do so, Meta needs to invest billions in infrastructure and technology, putting pressure on Zuckerberg to find cost savings in other areas of the business.
Despite a profitable recent history, Meta's substantial investments in AI and other technologies have sparked a need for financial optimization. The company has seen its stock soar since 2023, adding over $1 trillion to its market valuation, as Wall Street has rewarded the focus on efficiency.
