CEO Mark Zuckerberg is tightening Meta’s AI structure with 600 layoffs, focusing future growth on TBD Labs and new AI research projects.
Meta Cuts 600 Jobs to Simplify Its AI Operations
Meta Platforms Inc. is set to lay off around 600 employees from its artificial intelligence operations as part of a broad restructuring aimed at improving efficiency and accelerating decision-making. The cuts come even as the company continues hiring for its new TBD Labs, a division focused on advanced AI development, according to a report by Axios.
The layoffs mark another significant shift in Meta’s AI strategy. The company says it wants to eliminate unnecessary layers within its AI teams to operate more nimbly and reduce bureaucracy that has slowed innovation.
In an internal memo, Meta Chief AI Officer Alexandr Wang said the reorganization would help create smaller, faster-moving teams with more impact.
“By reducing the size of our team, fewer conversations will be required to make a decision, and each person will be more load-bearing and have more scope and impact,” Wang wrote.
Strengthening Leadership and Refocusing AI Goals
The layoffs were announced internally by Wang, who took charge after Meta’s $14.3 billion investment in Scale AI earlier this year. Importantly, TBD Labs, which employs many of Meta’s top AI researchers and engineers, will not be affected.
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Analysts believe the restructuring is intended to consolidate Wang’s leadership and better align Meta’s AI direction with CEO Mark Zuckerberg’s long-term vision. The move comes amid a larger effort to make Meta’s AI operations more agile and performance-driven as it competes with industry giants OpenAI and Google DeepMind.
Meta’s AI team had reportedly grown “too bloated” in recent years, leading to slower product rollouts and internal friction. The company now hopes that the leaner structure will improve communication, speed up decision-making, and encourage innovation at a faster pace.
Zuckerberg’s Push for AI Acceleration
In recent months, Zuckerberg has been increasingly vocal about Meta’s need to move faster in the AI race. His frustration reportedly grew after the LLaMA 4 models — released in April — received a lukewarm response from developers.
In response, Meta has launched Meta Superintelligence Labs, a new elite unit led by Alexandr Wang and former GitHub CEO Nat Friedman. This division brings together top researchers to push forward the company’s ambitions in artificial general intelligence (AGI).
Strengthening Leadership and Refocusing AI Goals
Meanwhile, Meta continues to pour billions into AI infrastructure. During the company’s Q2 2025 earnings call, Meta projected total expenses between $114 billion and $118 billion for next year, citing expanded AI investments as a major factor. Executives also indicated that 2026 expenses are expected to grow even faster as AI-related projects scale up.
Meta’s Massive Investment in AI Infrastructure
In addition to restructuring, Meta is building out massive physical infrastructure to support its AI goals. On Tuesday, the company announced a $27 billion partnership with Blue Owl Capital to develop the Hyperion Data Center in rural Louisiana — one of the largest data centers ever planned by a tech company.
CEO Mark Zuckerberg described the upcoming facility as being “large enough to cover a significant part of the footprint of Manhattan,” underscoring the scale of Meta’s infrastructure ambitions.
Meta is scheduled to release its third-quarter earnings next week, where analysts expect more details about how these restructuring moves and new investments will shape the company’s AI roadmap.
