Key Takeaways
- Meta is reportedly laying off about 600 employees in its artificial intelligence division amid an ongoing reorganization, according to a report from Axios.
- The company is still hiring for other roles in the unit, and encouraging affected employees to apply for other roles internally.
Booming profits and demand for AI hasn’t stopped Meta (META) from laying off employees.
The Facebook and Instagram parent is trimming about 600 roles in parts of its Superintelligence Labs led by Alexandr Wang, Axios reported Wednesday, though the company continues to hire for other AI-related positions in the unit.
The company’s newly formed “TBD Lab” unit of its Superintelligence Labs—which includes many of its high-profile AI hires poached from other companies in recent months—has been spared from the layoffs, according to the report.
Meta didn’t respond to an Investopedia request for comment in time for publication.
Why This Is Significant
Meta’s move comes after a flurry of recent layoffs at big tech peers such as Microsoft and Google parent Alphabet, contributing to worries about AI-driven impacts on the labor market. The companies in some cases are trimming their workforces as pressure mounts to cut costs where they can as they dramatically increase AI spending, while some expect advancements in the technology could reduce the need for workers over time.
Meta is reportedly encouraging employees who received notice to apply for other roles internally, expecting that many will be absorbed by other departments.
Back in July, CFO Susan Li told investors that Meta planned to grow its overall headcount through 2026 after a large round of layoffs earlier in the year, according to a transcript provided by AlphaSense, though the company reportedly moved to freeze AI hiring in August amid concerns about growing costs.
Meta, which is set to report earnings next Wednesday, is not the only big tech giant that’s made cuts this year. Several of its Magnificent 7 peers including Microsoft (MSFT), Google parent Alphabet (GOOGL) and Amazon (AMZN) have undergone layoffs in recent months even as their revenues rose. That’s added to worries that growing spending on AI could lead major technology companies to announce more job cuts in a bid to maintain profit margins.
Shares of Meta closed fractionally higher on Wednesday. They’ve added roughly one-quarter of their value in 2025.
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