Meta may cut 20% of its workforce to fund AI
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Meta, the parent company of Facebook, may be preparing for massive layoffs, potentially affecting 20% or more of its workforce. This information, reported by Reuters, highlights that these job cuts aim to offset the company's significant investments in AI-related infrastructure, as well as associated acquisitions and hiring.
As of December 31, Meta employed approximately 79,000 people, according to recently filed documents. In response to these rumors, a Meta spokesperson described the Reuters article as "speculative reporting" based on theoretical approaches.
This development comes amid a backdrop where many tech companies, including Block, have announced large-scale layoffs. These reductions are often justified by the increasing automation driven by AI. However, some analysts and leaders, such as Sam Altman of OpenAI, have expressed doubts, suggesting that these cuts could be an "AI wash," a way to mask other issues such as over-hiring during the pandemic.
Meta has already implemented large-scale layoffs, notably in November 2022, when 11,000 positions were cut, followed by another 10,000 in March 2023.
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