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New Delhi: Amid growing global uncertainty and rising geopolitical tensions, the impact of Artificial Intelligence (AI) on jobs is becoming increasingly visible across the tech sector. Now, social media giant Meta, the parent company of Facebook, is reportedly set to lay off nearly 8,000 employees on May 20 as part of a major restructuring plan.
According to reports, Meta CEO Mark Zuckerberg is reshaping the company around smaller and highly efficient AI-powered teams. During the company’s recent first-quarter earnings call, Zuckerberg reportedly emphasized that Meta now wants employees who can independently handle major projects with minimal support.
The move signals a significant shift in how major tech companies are adapting to the AI era.
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Zuckerberg believes that modern AI tools have dramatically increased productivity inside the company. According to him, tasks that previously required dozens of engineers working for months can now be completed by one or two individuals within a week using advanced AI systems.
Because of this transformation, Meta is introducing what it describes as an “ultra-flat” organizational structure. Under this model, a single manager could supervise nearly 50 engineers, reducing layers of management and increasing operational efficiency.
Company officials say the layoffs are not only about reducing costs but are part of a larger long-term strategy aimed at preparing Meta for the future of AI-driven development.
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This year, Meta is reportedly planning record capital expenditure between $125 billion and $145 billion for AI infrastructure. The spending includes construction of data centres, development of custom AI chips and training of advanced AI models.
Meta Chief Financial Officer Susan Li said infrastructure spending has nearly doubled compared to last year, creating financial pressure and imbalance between payroll costs and overall company expenditure.
She also admitted that there is currently no clear answer regarding what the ideal workforce size should be in the rapidly evolving AI landscape.
Following the earnings call and announcements regarding heavy spending, investors reacted cautiously. Meta shares reportedly fell nearly 6 percent, reflecting market concerns over rising costs and uncertainty surrounding the company’s long-term AI strategy.
The latest developments at Meta have once again intensified global concerns regarding AI-driven job losses. Experts believe more tech companies may soon adopt similar workforce restructuring models as automation and generative AI tools continue advancing rapidly.
The debate over whether AI will create more opportunities or eliminate traditional jobs is expected to grow stronger in the coming years.
