AI Division Layoffs: Meta Cuts 600 Amid Billion-Dollar Investment

At a glance

• Layoffs: Meta is cutting approximately 600 jobs within its AI unit.
• Last Day: Affected employees’ last working day is set for Nov. 21.
• Severance: The company is offering 16 weeks of severance pay plus additional weeks based on tenure.
• Expansion: Despite layoffs, Meta is expanding its AI capabilities with significant investments.

Meta has invested heavily in artificial intelligence – from AI chatbots and companions to the infinite AI slop generator Vibes and even an AI-powered dating assistant. But that enthusiasm isn’t translating to job security for everyone.

On Wednesday, Meta’s Chief AI Officer Alexandr Wang announced in a memo that the company is laying off approximately 600 employees within its AI unit. The news, first reported by Axios and confirmed by CNBC, affects staff working on AI infrastructure, the Fundamental Artificial Intelligence Research (FAIR) group, and other product-related teams.

Despite the cuts, Meta says it’s still hiring for its new superintelligence division, dubbed TBD Lab.

Impacted employees were told their last day will be Nov. 21 and are currently in a “non-working notice period.” The company is offering 16 weeks of severance pay, plus two additional weeks for every year of service, and is encouraging affected employees to apply for other roles within Meta.

“By reducing the size of our team, fewer conversations will be required to make a decision, and each person will be more load-bearing and have more scope and impact,” Wang wrote in the internal memo, according to TechCrunch.

The layoffs don’t appear to signal a retreat from AI. Just a day earlier, Reuters reported that Meta closed a $27 billion financing deal with Blue Owl Capital to fund a massive data center expansion — a move analysts say is key to supporting its next generation of AI tools.

This also follows an aggressive AI hiring spree. In recent months, Meta has lured top talent from OpenAI, brought Wang on board, and invested $14.3 billion in Scale AI.