Meta is undertaking a significant restructuring of its artificial intelligence division, cutting approximately 600 jobs to streamline operations and enhance strategic focus. This move, announced by Chief AI Officer Alexandr Wang, is designed to reduce internal competition and accelerate Meta’s ambitious AI development efforts, signaling a new era of leadership and intensified competition in the AI landscape.
In a bold strategic move, Meta Platforms Inc. has announced plans to lay off around 600 employees from its artificial intelligence (AI) division. This decision, communicated internally by Chief AI Officer Alexandr Wang, underscores a broader effort to streamline the organization, reduce internal competition, and accelerate the company’s aggressive push into advanced AI development.
The Immediate Impact: Who is Affected by Meta’s AI Cuts?
The layoffs will primarily hit employees within Meta’s Fundamental Artificial Intelligence Research (FAIR) division, which oversees the company’s core AI infrastructure, as well as other AI infrastructure teams and related AI product roles. This strategic reduction aims to address what insiders described as a “bloated” AI department where various teams, including FAIR, often competed for critical computing resources, as reported by CNBC.
Conversely, employees in TBD Lab, a team led directly by Wang, will remain unaffected. This team is responsible for Meta’s large-scale language models, including Llama, which forms the foundation of Meta’s AI assistant. The retention of this team, reportedly comprising many top AI talents, reflects CEO Mark Zuckerberg’s continued confidence in recent high-profile AI hires over some legacy staff, according to Axios.
Why the “Bloated” AI Unit Underwent Surgery
The decision to downsize the AI division is not merely a cost-cutting measure, but a strategic reorganization to create a more agile and efficient operation. In an internal message, Wang emphasized that by reducing team size, fewer conversations would be required to make decisions, and each individual would have a greater scope and impact within the organization.
This restructuring is also seen as a move to solidify Wang’s role as the undisputed leader of Meta’s overarching AI strategy. The newly formed Superintelligence Labs, created under Wang’s leadership, inherited this oversized AI structure, and the layoffs are designed to reduce redundancy and centralize control over key AI initiatives.
The Genesis of Change: Mark Zuckerberg’s Vision and Superintelligence Labs
The roots of this overhaul can be traced back to Mark Zuckerberg’s growing frustration with Meta’s AI progress, particularly following a lukewarm reception to the Llama 4 models released in April. To accelerate development, Zuckerberg announced the formation of Meta Superintelligence Labs, an ambitious project initially co-led by Wang and former GitHub CEO Nat Friedman.
Wang joined Meta in June 2025, as part of a significant $14.3 billion investment in Scale AI, bringing a fresh perspective and a mandate for change to Meta’s AI ecosystem. His leadership has been instrumental in reshaping the company’s approach to superintelligence and large language models.
Meta’s Aggressive AI Ambitions: Competing with Giants
Meta has been aggressively revising its AI efforts to keep pace with formidable competitors like OpenAI and Google. This competitive drive has fueled massive investments, including a monumental $27 billion deal with Blue Owl Capital to fund and develop “Hyperion,” a colossal data center project in Louisiana suburbs. Zuckerberg has noted that Hyperion will be large enough to cover a “significant part of the footprint of Manhattan,” showcasing the sheer scale of Meta’s infrastructure ambitions.
Financially, Meta’s commitment to AI is reflected in its recent earnings. In its second-quarter earnings announcement in July 2025, Meta projected total expenses for the year to be in the range of $114 billion to $118 billion. The company explicitly stated that “AI-related businesses will drive the cost growth rate in 2026 higher than the previous year,” indicating a sustained increase in investment.
Beyond the Numbers: The Human and Strategic Implications
Affected employees were notified that their termination date is November 21, marking the beginning of a “non-working notice period” during which their internal access will be removed. Meta is offering a severance package of 16 weeks of pay, plus an additional two weeks for each completed year of service, minus the notice period.
Despite the layoffs, Wang’s memo indicated a desire to retain talent, stating, “This is a talented group of individuals, and we need their skills in other parts of the company.” Affected employees are being invited to apply for other roles within Meta, with the expectation that most will find new positions internally.
Looking Ahead: Meta’s Future in the AI Race
As Meta prepares to announce its third-quarter financial results at the end of October 2025, the company’s strategic realignment of its AI division will be closely watched. This restructuring under Alexandr Wang is a clear signal of Meta’s intent to become a leading force in artificial intelligence, focusing on agility, leadership consolidation, and aggressive investment to overcome fierce competition. The success of this overhaul will largely determine Meta’s standing in the rapidly evolving global AI landscape.
