Meta’s latest ‘efficiency’ layoffs signal shift towards AI priorities

Meta has continued its “efficiency” campaign with another wave of layoffs, impacting approximately 100 employees in its Instagram, Facebook, and Reality Labs divisions. These incremental cuts form part of a broader corporate restructuring under CEO Mark Zuckerberg’s long-term strategy to streamline operations, reallocate resources, and sharpen the company’s focus on artificial intelligence (AI) and infrastructure development.

The layoffs, which were first reported by The Verge, affected software engineers and monetisation specialists across key Meta platforms. Sources indicate that many employees were given weeks of notice, with some offered alternative roles or severance packages. However, not all workers were given the same level of transparency, leaving some surprised by the abrupt end to their roles.

“Everyone was not treated the same in this,” a source told Fortune, as several employees found out their last day would be just days after receiving the notice.

A Meta spokesperson confirmed the changes, saying, “A few teams at Meta are making changes to ensure resources are aligned with their long-term strategic goals and location strategy. This includes moving some teams to different locations and transitioning some employees to new roles. For roles that have been eliminated, we work hard to find other opportunities for impacted employees.”

Restructuring and realigning towards AI

The move marks at least the third round of cuts at Meta this year, following Zuckerberg’s 2023 declaration that the “year of efficiency” would become a permanent fixture of the company’s operational strategy. Meta’s workforce had swelled to nearly 71,000 employees by the end of the most recent quarter, a significant expansion during the pandemic. However, as the digital landscape shifted post-pandemic, Meta responded with significant headcount reductions. The company slashed 13% of its workforce, or around 11,000 jobs, in 2022, followed by another 10,000 layoffs in 2023, as well as the elimination of 5,000 unfilled roles.

The latest cuts are part of an ongoing effort to realign resources towards AI and other core business areas. Meta’s Reality Labs, the division responsible for the company’s push into virtual reality (VR) and augmented reality (AR), has been particularly affected by frequent restructurings. These team-specific adjustments highlight the company’s pivot towards AI as a central pillar of its future growth, with resources being shifted away from projects that no longer align with its strategic goals.

Notably, Jane Manchun Wong, a high-profile software engineer known for her work on Meta’s Threads platform, was among those impacted by this wave of layoffs. Wong, who gained recognition for reverse-engineering new social media features, had recently moved to an Instagram team that was disbanded in the latest cuts. Wong confirmed her departure via Threads, although the Threads team itself was not affected.

Despite hiring in key areas such as AI, Meta employees remain cautious about further job cuts. As one insider noted, performance reviews have become more stringent, and headcount is being kept “very tight,” signalling that the company’s efficiency measures are far from over. With Meta’s shift towards long-term strategic goals, particularly in AI, employees expect more team reshuffles and potential layoffs in the months to come.

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