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Meta Platforms Inc. is alerting thousands of employees that they’re being laid off, part of a previously announced restructuring aimed at reducing costs while the company invests heavily in artificial intelligence.
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The company notified workers around the world Wednesday morning, starting with employees across Asia, who got the note at 4 a.m. Singapore time. US..-based staff received word during their morning.
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Chief Executive Officer Mark Zuckerberg posted internally Wednesday that the firm does “not expect other company-wide layoffs this year,” adding that it needs to do a better job communicating with employees, according to the memo, which was reviewed by Bloomberg News.
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“This is the most dynamic I have seen our industry,” Zuckerberg wrote, adding that he’s optimistic about Meta’s position in the AI race and its ability to deliver AI super-intelligence to users. “We’re transforming our company to make sure it will always be the best place for talented people to have the greatest impact.”
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Employees were encouraged to work from home while the company cut roughly 8,000 roles globally. The latest round of cuts is expected to hit Meta’s engineering and product teams in particular, said people familiar with the company’s plans, who asked not to be named as the information is not public.
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In Ireland, the company cut around 350 jobs, an estimated fifth of its workforce there, according to a person familiar with the matter who asked not to be identified as the information is private. A Meta representative declined to comment on specific cuts but said the company has notified affected employees and the Irish government.
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“Automators like Meta risk no longer being an employer of choice as it’s being revealed that they will cut out the human when the opportunity presents itself,” said Jan-Emmanuel De Neve, professor of economics and behavioural science at the University of Oxford. “Doing so might well lead to short-term cost savings but risks longer-term growth potential by undermining employee wellbeing and engagement.”
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On Monday, Meta informed staff that some 7,000 workers have also been reassigned to newly formed teams that are focused on AI initiatives, including products and agents. The company, which has committed well in excess of $100 billion to AI capital expenditures this year, had just under 80,000 employees at the end of March, ahead of the reassignments and layoffs.
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“We’re now at the stage where many orgs can operate with a flatter structure with smaller teams of pods/cohorts that can move faster and with more ownership,” Meta’s Head of People Janelle Gale said in the memo Monday, which was reviewed by Bloomberg News. “We believe this will make us more productive and make the work more rewarding.”
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