Meta laid off 10% of its workforce as Mark Zuckerberg warns that in the AI race 'success isn't a given' | Fortune

Meta dismissed 8,000 workers, about 10% of its workforce, and planned to move 7,000 employees into AI-focused roles. A memo emphasized that success is not guaranteed in the AI race. Zuckerberg stated that AI is the most consequential technology of the lifetimes and that companies leading the way will define the next generation. Meta said it does not expect additional company-wide layoffs this year. After the layoffs, Meta expects about 71,000 employees. Meta also projected $125 billion to $145 billion in capital expenditures driven by AI, potentially doubling prior spending. Meta continues pursuing “personal superintelligence,” while reporting strong first-quarter revenue growth.

"“AI is the most consequential technology of our lifetimes,” Zuckerberg said in the memo. “The companies that lead the way will define the next generation.” As part of the restructuring this week, 7,000 employees were also set to be moved into AI-focused roles, several outlets reported. Zuckerberg said in the memo that the company doesn't expect to conduct any other company-wide layoffs this year."

"Far from the red-eyed admission of fault he gave when Meta conducted some of its first mass layoffs in 2022, on Wednesday, Zuckerberg dismissed 8,000 workers, or about 10% of its workforce, with a detached-sounding memo that emphasized that “success isn't a given” in the AI race. The company will be left with an estimated 71,000 employees after the layoffs, according to its most recent headcount number from December."

"In its first-quarter earnings reported late last month, Meta said it would spend between $125 billion and $145 billion on capital expenditures fueled by AI. The upper bound of that spending would be about double the $72 billion Meta spent on capex in 2025. Meta is pouring billions into pursuing Zuckerberg's plan to develop “personal superintelligence,” that allows anyone to “achieve your goals, create what you want to see in the world, experience any adventure, be a better friend to those you care about, and grow to become the person you aspire to be,” the CEO wrote in a public letter last summer."

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