Meta to cut 8,000 jobs as it charges into AI

Meta plans to lay off roughly 8,000 employees, or 10% of its workforce, in a move to slash costs as the technology company pushes deeper into artificial intelligence. 

In an internal memo sent to workers, Meta said the job cuts are intended to make the company more efficient and to offset its other investments. The layoffs will start on May 20, the company confirmed.

More U.S. employers are pointing to AI for recent decisions to eliminate staff, including companies such as Pinterest and chemical maker Dow. Meanwhile, tech giants are engaged in an arms race to build out their AI capabilities, including building hundreds of data centers or buying AI startups. 

More layoffs at Meta could be in the works later this year as the company seeks to reduce costs and further develop its AI capabilities, Wedbush Securities analyst Dan Ives said in a report on Thursday.

"We believe that this is part of Meta's strategy to ... leverage AI tools to automate tasks that once required large teams, allowing the company to streamline operations and reduce costs while maintaining productivity, driving an increased need for a leaner operating structure," he said. 

In a January regulatory filing, Meta said its AI plans include delivering "personal superintelligence for everyone."

"We are also working to develop the next generation of AI models and advance our vision to build superintelligence, which we define as AI that surpasses human intelligence," the company said in its filing. "Although it is inherently difficult to predict when superintelligence may be achieved, we are investing now because we believe this has the potential to begin a new era of individual empowerment, where people can direct superintelligence towards what they value in their own lives."

Meta founder and CEO Mark Zuckerberg described superintelligence in a blog post last year as a potentially powerful tool for enhancing prosperity.