Meta Platforms Inc. has initiated a major restructuring within its artificial intelligence division, laying off approximately 600 employees in a strategic move to streamline operations and accelerate innovation. The layoffs, confirmed on October 22, 2025, mark a pivotal moment in Meta’s aggressive push to remain competitive in the AI arms race against rivals like OpenAI and Google.
Why Meta Is Restructuring Its AI Division
The cuts were announced via an internal memo from Alexandr Wang, Meta’s Chief AI Officer, who joined the company in June following a $14.3 billion investment in Scale AI. Wang now leads Meta Superintelligence Labs, a newly formed unit tasked with developing next-generation AI systems that aim to surpass human intelligence.
According to Wang, the decision to reduce headcount was driven by the need for “smaller, talent-dense teams” that can move faster and make decisions with fewer layers of bureaucracy. “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 stated in the memo.
Who Was Affected by the Layoffs?
The layoffs impacted employees across Meta’s AI infrastructure teams, the Fundamental Artificial Intelligence Research unit (FAIR), and other product-related roles. However, staff within TBD Labs—a group composed of top-tier AI talent recruited earlier this year—were spared. This move signals CEO Mark Zuckerberg’s confidence in his new hires and a shift away from legacy teams.
Employees affected by the layoffs were placed on a “non-working notice period” until November 21, during which they retain access to severance benefits but are not expected to perform any work. Meta is offering 16 weeks of severance pay, plus two additional weeks for every year of service, minus the notice period.
Meta’s AI Challenges and Financial Outlook
Zuckerberg’s frustration with Meta’s AI progress—particularly the lukewarm reception of its Llama 4 models—has fueled the company’s recent overhaul. Meta’s AI spending is projected to drive expenses to between $114 billion and $118 billion in 2025, with even higher growth expected in 2026.
In addition to internal restructuring, Meta recently announced a $27 billion partnership with Blue Owl Capital to develop the Hyperion data center in Louisiana. The facility is expected to be massive enough to rival the footprint of Manhattan, underscoring Meta’s commitment to scaling its AI infrastructure.
🚀 What’s Next for Meta AI?
With a leaner team and a renewed focus on innovation, Meta Superintelligence Labs now operates with just under 3,000 employees. Led by Wang and former GitHub CEO Nat Friedman, the lab is positioned to drive Meta’s future AI breakthroughs.
As Meta prepares to release its third-quarter earnings next week, industry watchers will be keen to see how these strategic shifts impact the company’s performance and long-term AI roadmap.