Social media giant Meta is undergoing significant internal downsizing as it aims to pull ahead in the global AI race. To balance its soaring expenditures on artificial intelligence and data centers, the company is focusing on a widespread workforce reduction plan.
Meta Could Lay Off One-Fifth of Its Workforce
According to reports sourced from Reuters, the tech giant aims to reduce its total workforce by 20%. This staggering figure means approximately 15,800 employees could lose their jobs. If realized, this would mark the largest staff reduction since the period between 2022 and 2023, during which the company let go of 22,000 people.
Virtual Reality and Metaverse Ambitions Fading
This potential downsizing news comes shortly after claims that the firm is retreating from its Virtual Reality (VR) and Metaverse visions. The board of directors is reportedly slashing budgets for older projects and closing down game studios one by one. Instead, the company is reallocating its financial resources toward acquiring innovative startups like Moltbook and constructing massive-scale data centers.
Company Officials Deny the Claims
Amidst these strategic shifts, the brand remains under scrutiny regarding smart glasses, AI chatbots, and teen safety. Following the reports in the press, company spokesperson Andy Stone defended the firm, stating that these reports are speculative news based on purely theoretical approaches. However, industry experts believe that such cuts are inevitable given the fierce competition in the AI sector.
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