""We [basically] have two cost centers in the company," Zuckerberg said, pointing to raw processing power, like GPUs and chips, as well as data centers. "There's [compute and infrastructure] and there's people-oriented things, and if we're investing more in one area to serve our community, then that means that we have less capital to basically allocate to the other.""
""If a team used to take 50 or 100 people and now it takes 10, having 50 or 100 people on that team can actually be counterproductive going forward-so I think we need to fix that," Zuckerberg said."
"Meta CFO Susan Li stated that the company is "very focused on leveraging AI tools" to boost productivity and is still navigating the company's future "optimal size.""
"Li added that because of the layoffs, Meta expects lower employee compensation costs compared to last quarter. "But that is offset within this year by restructuring costs that we expect to incur as part of the layoffs," she added."
Meta plans to lay off 10% of its workforce, around 8,000 employees, as CEO Mark Zuckerberg cites increased spending on data centers and AI infrastructure as the primary reason. He explained that the company has two main cost centers: processing power and personnel. As Meta invests more in technology, it necessitates a reduction in workforce size. Employee morale has declined, with negative sentiment about the company rising significantly. CFO Susan Li noted that while layoffs will reduce compensation costs, restructuring expenses will offset these savings.
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