Meta's AI Shakeup: 600 Jobs Cut To Speed Up Progress

Core Insights - Meta Platforms, Inc. is eliminating approximately 600 roles in its artificial intelligence division to streamline operations and enhance agility [1] Job Cuts - The layoffs were announced in an internal memo from Chief AI Officer Alexandr Wang, who joined Meta after the company's $14.3 billion investment in Scale AI [2] - Affected teams include AI infrastructure, Fundamental Research, and product-related teams, with some employees notified that their end date is November 21 [3] - Employees will remain on a nonworking notice period without system access but can apply for new internal positions [3] - Meta will provide 16 weeks of severance pay plus an additional two weeks for each full year of service, excluding the notice period [4] AI Strategy - Meta is restructuring its AI strategy to compete with OpenAI and Google, with significant investments in computing resources and hiring [5] - CEO Mark Zuckerberg has expressed dissatisfaction with Meta's AI progress, particularly after the lukewarm reception of the Llama 4 models launched in April [5] - Following the Scale AI deal, Meta introduced Meta Superintelligence Labs, led by Wang and former GitHub CEO Nat Friedman [5] Financial Outlook - In July's earnings update, Meta projected 2025 expenses between $114 billion and $118 billion, indicating an increase in its earlier forecast, with AI spending expected to drive higher growth in 2026 [6] - The company is set to report its third-quarter results next week [6]