Meta to Begin Large-Scale Restructuring on the 20th... About 8,000 Layoffs Expected
Restructuring Focused on New AI Businesses
Additional Layoffs Planned for the Second Half of the Year
According to CNBC on May 18 (local time), Meta, the operator of Facebook and Instagram, will begin a large-scale restructuring on May 20, laying off about 8,000 employees, which accounts for 10% of its workforce. The job cuts are part of efforts to expand investment in artificial intelligence (AI), and additional layoffs are expected in the second half of this year.
According to CNBC, this large-scale restructuring is a result of increased investment in AI announced last month. Meta significantly raised its AI investment outlook last month, from the previous 10 billion dollars (about 15 trillion won) to 145 billion dollars (about 216 trillion won). Previously, Meta established the Meta Superintelligence Lab (MSL) last year and began in earnest to develop superintelligent AI, which has led to a substantial increase in AI investment.
As a result, Meta already laid off 1,000 employees from its Reality Labs division in January, followed by another round of layoffs affecting hundreds more in March. This time, Meta has decided to terminate contracts with external and contract companies responsible for content review work, triggering another large-scale restructuring. The estimated scale of this round of layoffs is about 8,000 employees, or approximately 10% of the total workforce of 79,000 as of the end of last year.
Alongside the mass layoffs, Meta also plans to reorganize by transferring 7,000 employees to new business areas related to artificial intelligence (AI) work. In this process, some management positions will be eliminated as well. Janelle Gale, Chief People Officer (CPO), informed employees that "executives will announce the layoffs along with the organizational restructuring."
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It is reported that Meta is planning additional layoffs in the second half of the year. Citing internal sources, CNBC reported that "there is a possibility of another round of layoffs in August, and concerns are rising throughout the company due to projections of further job cuts at the end of the year."
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