Facebook-Instagram parent Meta cuts 600 Jobs in AI unit restructure

New Delhi/California (The Uttam Hindu): Meta, the parent company of Facebook, Instagram, and WhatsApp, is once again planning large-scale layoffs. This time, the company's Artificial Intelligence (AI) unit will be affected, with 600 employees set to be laid off. A company spokesperson told CNBC that by removing these employees, the company aims to reduce its organizational layers and speed up work.

The layoffs were announced in an internal memo sent by the company's Chief AI Officer, Alexander Wang. It's worth noting that Meta hired Alexander Wang in July of this year, following the company's massive $14.3 billion investment in Scale AI.

The layoffs will primarily affect Meta's AI infrastructure units, Fundamental Artificial Intelligence Research (FAIR) unit, and other product-related positions. However, they will not impact employees at TBD Labs, which houses many of the company's top-tier AI employees hired this year.

People familiar with the matter say Meta's AI unit has seen significant hiring in recent months, particularly for the "Meta Super Intelligence Lab." This has led to a significant team size.

The company is rapidly revamping its AI approach to compete with rivals like OpenAI and Google, spending billions of dollars on infrastructure and the right talent. These layoffs are part of this process. The reductions will reduce Meta Superintelligence Labs' workforce to fewer than 3,000.

Meta has informed several affected employees that November 21st will be their last day at the company. Until then, they will be on a "non-working notice period." During this time, their internal access will be disabled and they will not be required to perform any work for Meta. The company says employees can use this time to find other jobs within Meta.