Meta cuts jobs and advances AI restructuring

Meta laid off around 700 employees in Reality Labs on Wednesday, as well as other employees in recruiting, sales, and Facebook, reports the New York Times. Reality Labs is Meta's hardware division and is responsible for the development of smart glasses and VR headsets.

Meta had already cut 1,500 jobs in the department in January. The VR division was primarily affected. The company explained at the time that it was shifting investments from the metaverse to the wearables division because it was growing more strongly. Meta is the market leader in AI glasses and has sold nearly ten million devices since the end of 2023. The report does not specify which divisions the 700 new layoffs impact. At the end of last year, Meta employed nearly 79,000 people, around 15,000 of whom were in Reality Labs.

The latest measures are taking place against the backdrop of a strategic reorientation towards artificial intelligence. Meta plans investments of up to 135 billion dollars this year, which are to be primarily channeled into its AI infrastructure and the construction of data centers. Last year, Meta also spent billions on highly qualified AI specialists. The goal is to take a leading role in the race for AI superintelligence.

Meta is testing new structures for AI-driven teams

Meanwhile, the US news portal Business Insider reports that a fundamental reordering of roles and team structures with a view to artificial intelligence is taking place in a team of around 1,000 people within Reality Labs. The pilot program envisages smaller, cross-functional teams and flatter structures. According to Meta, the reorganization and the current layoffs are not directly related.

According to an internal memo, employees are being reclassified as “AI Builders” and organized into so-called “Pods.” These units consist of a few people who are intended to work results-oriented and often across disciplines. The Pods are led by “Pod Leads,” who in turn report to “Org Leads.” Processes such as performance reviews and promotions are to be supported by unspecified “AI systems.” As early as February, it leaked out that Meta intends to measure employee performance in the future by how intensively they use AI tools.

In parallel, Meta is increasingly relying on financial incentives for its management. For the first time since the IPO in 2012, the company is offering top managers new stock options tied to ambitious price targets, reports Bloomberg. According to the report, the value of the compensation could increase by up to 921 million dollars per executive in the next five years. Provided, of course, that Meta achieves its ambitious growth targets. The company explained that the measure is intended to retain key personnel in the age of AI and drive the company's growth.

(afl)