Meta Restructures AI Operations with 600 Job Cuts, Shifts Focus to Competitive AI Lab

Major Workforce Reduction in Core AI Divisions

Meta Platforms is reportedly cutting about 600 jobs from its artificial intelligence research and development teams, according to internal company communications. The layoffs primarily affect the company’s Fundamental AI Research (FAIR) group, which has been responsible for foundational AI projects including PyTorch, the popular open source machine learning library used by developers worldwide.

Major Workforce Reduction in Core AI Divisions
Reorganization Aims to Streamline Decision-Making
Strategic Shift Toward Competitive AI Development
High-Profile Recruitment Challenges
Financial Context and Leadership Changes
Internal Mobility Opportunities

Reorganization Aims to Streamline Decision-Making

Sources indicate the restructuring is designed to reduce bureaucracy within Meta’s AI operations. In an internal memo viewed by Axios, Chief AI Officer Alexandr Wang stated that with a smaller team, “fewer conversations will be required to make a decision.” Wang further explained that under the new structure, “each person will be more load-bearing and have more scope and impact,” suggesting the company believes a leaner organization will operate more efficiently.

Strategic Shift Toward Competitive AI Development

While cutting positions in established research divisions, Meta is reportedly protecting its new TBD Lab from the workforce reductions. Analysts suggest this lab is working on Llama 4.5 as a direct competitor to OpenAI’s recently released GPT-5. To staff this initiative, CEO Mark Zuckerberg has launched an aggressive hiring campaign, personally reaching out to top talent at rival companies including OpenAI, Google AI, and Google DeepMind.

High-Profile Recruitment Challenges

Despite substantial investment in talent acquisition, reports indicate Meta has faced difficulties retaining its expensive new hires. High-profile incidents include Shengjia Zhao, co-creator of ChatGPT, who reportedly threatened to leave just days after joining the company. Sources indicate he only remained after being granted the title of “Chief AI Scientist.” Other recruits have allegedly departed within weeks of starting, while veteran employees have expressed concerns about internal politics and unhealthy competition.

Financial Context and Leadership Changes

The reorganization comes after Meta reportedly invested $14 billion in Scale AI, the former company of current Chief AI Officer Alexandr Wang. This substantial financial commitment signals the company’s intensified focus on advancing its artificial intelligence capabilities despite the current workforce reductions.

Internal Mobility Opportunities

According to the internal communications, employees affected by the layoffs are being encouraged to apply for other positions within Meta Platforms. The company reportedly recognizes that their AI expertise remains valuable and needed in other divisions, suggesting the cuts represent a strategic reallocation rather than a wholesale reduction in AI investment.