Meta Platforms CEO Mark Zuckerberg has attributed the company’s planned layoffs to rising investment in artificial intelligence, warning employees that further job cuts may be on the horizon.
Speaking during a company-wide town hall on Thursday, Zuckerberg said Meta is under increasing pressure to balance its spending priorities as it doubles down on AI development.
“We basically have two major cost centers in the company: compute infrastructure and people-oriented things,” he explained. “If we’re investing more in one area to serve our community, then that means we have less capital to allocate to the other.”
He added that the shift in spending inevitably requires a reduction in workforce size.
Meta is set to cut approximately 10% of its employees starting May 20, with additional layoffs expected later in the year. However, Zuckerberg clarified that the cuts are not directly tied to the company’s recent restructuring into an “AI-native” organization or its push to develop autonomous AI agents.
“Getting everyone internally to use AI tools and getting to do the work more efficiently is not the thing that’s driving layoffs,” he said, while noting that the long-term impact of AI adoption remains uncertain.
“We’ll see how all this stuff trends,” Zuckerberg added. “I wish I could say I have a crystal ball for the next three years — I don’t think anyone does.”
This marks the first time Zuckerberg has directly addressed employees about the layoffs since reports surfaced in March.
The company has also faced internal backlash over how the changes have been communicated. Some employees have criticized leadership for not addressing the layoffs alongside announcements of its AI-focused restructuring. Concerns have also been raised over a new initiative that tracks employee activity — including mouse movements, clicks, and keystrokes — to help train AI systems.
According to messages reviewed by Reuters, internal forums have seen growing dissatisfaction among staff over both the layoffs and broader strategic direction.
As Meta accelerates its AI ambitions, the company now faces the challenge of managing workforce morale while reshaping its future around emerging technologies.