Mark Zuckerberg explained new cutbacks due to rising AI costs and did not rule out possible subsequent layoffs

Meta Announces Planned Layoffs: Reasons and Employee Reactions

Meta CEO Mark Zuckerberg explained the upcoming wave of layoffs as a consequence of rising capital expenditures on artificial intelligence (AI) development. According to him, the company’s cost structure is dominated by two categories—computing infrastructure and personnel. If the company invests more in one, fewer resources remain for the other, forcing it to “reduce team size.”

> *“We have two main cost drivers: computing infrastructure and people… So we need to cut the company size a bit,”* Zuckerberg said at a meeting with subordinates.

He emphasized that reorganizing departments around the new “AI native” structure and the AI‑agent project is not directly linked to staff reductions.

Employee Reaction

Some Meta employees openly expressed dissatisfaction with the layoff news. The CEO noted that the layoffs are “not related to forcing all employees to use AI tools, nor to increasing work efficiency.” Nevertheless, he added that he would monitor the situation’s further development and promised to provide more detailed information soon.

Plans for the Coming Weeks

- May 20 – a reduction of about 10 % of staff is planned.
- The second half of the year is expected to bring another wave of layoffs, but specific details are not yet disclosed.

The CEO declined to comment on Meta’s long‑term AI development plans or company structure.