FT: Meta cuts 10% of staff due to rising costs for artificial intelligence

Author:
Svitlana Kravchenko
Date:

Meta will cut 10% of its staff in May — about 8 000 employees — to offset CEO Mark Zuckerbergʼs billion-dollar spending on artificial intelligence development.

This is reported by the Financial Times, citing an internal company memo.

The company told employees that the cuts were necessary to improve efficiency and fund massive investments in AI, both in building data centers and hiring expensive talent to compete with other tech players.

In addition to the layoffs, Meta also decided to freeze approximately 6 000 previously planned vacancies.

The layoffs are scheduled for May 20, and employees have been promised compensation packages, including 18 months of health insurance for employees in the US.

Amid these changes, tensions are growing within the company, with employees complaining about several waves of layoffs and restructuring over the past two years.

Additional concerns have been raised about plans to install software to track employee actions — including mouse movements, keystrokes, and screen content — to train AI, with some staff fearing the company is creating tools that could replace their jobs.

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