Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg told employees on Thursday that the company’s aggressive artificial intelligence spending is directly contributing to planned layoffs.
Meta’s AI Investment Reshapes Workforce Priorities
During a company town hall, Zuckerberg said Meta’s expanding AI infrastructure budget is forcing difficult financial trade-offs between funding advanced compute systems and maintaining headcount, Reuters reported.
Zuckerberg explained that Meta’s two primary expenses are infrastructure and personnel and increasing spending in one area means reducing available resources in another.
As the company accelerates investments in AI, he said it needs to “take down” workforce size to balance those costs.
Meta is expected to cut roughly 10% of its workforce beginning May 20, with additional layoffs reportedly coming later this year.
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