Meta lays off 600 employees in its AI unit despite massive investments

 

Trying to balance operating expenses and expansion

Meta lays off 600 employees in its AI unit despite massive investments

Meta announced the layoff of approximately 600 employees from its AI unit, as part of an effort to reduce management levels and accelerate the pace of work within the company. A Meta spokesperson confirmed that the layoffs included employees in AI infrastructure units, as well as the Fundamental Research (FAIR) team, and other positions related to product development.

The decision came in an internal memo from the company's chief AI officer, Alexander Wang, who joined Meta last June as part of a $14.3 billion investment deal linked to Scale AI, according to a report published by CNBC. Despite the wave of layoffs, Meta continues to invest billions of dollars in AI projects to keep up with major competitors like OpenAI and Google. On Tuesday, it announced a $27 billion deal with Blue Owl to finance a massive data center in Louisiana.

The center, called "Hyperion," is expected to cover an area equivalent to a large portion of Manhattan, CEO Mark Zuckerberg confirmed in a previous post. Analysts point out that this move represents an attempt to balance operating expenses with the massive expansion of artificial intelligence projects, amid a frenzied global race to master the next generation of smart technologies.