Meta Layoffs 2025: Budget Cuts or Strategy?

Meta will carry out a new round of layoffs next week. The company informed employees about the decision through internal memos. These were seen by Reuters. The layoffs will begin on Monday at 5 AM (local time) in most countries, including the United States. If facts are to be addressed, AI is involved. Meta intends to use AI systems to replace certain engineering positions. The business is employing machine learning engineers more quickly. According to a World Economic Forum survey, 41% of businesses globally expect laying off employees over the next five years as a result of AI. However, employees in Germany, France, Italy, and the Netherlands will not be affected due to local labor laws. The laws there are in favour of the employees. Workers in several other countries across Europe, Asia, and Africa will receive their layoff notices between February 11 and February 18. Meta has cut over 21,000 workers since 2022.

Meta Layoffs: Is Meta at loss?

Meta is not currently facing losses. It has invested billions into AI and metaverse technologies, increasing costs. The company is trying to improve efficiency. Meta is reducing expenses by cutting non-essential roles. About 5% of the company's "lowest performers" will be let go, and at least some of the positions will be filled, the company announced last month. The Information was the first to report on the Friday message, in which Gale described the cutbacks as "performance terminations."

"Meta was planning to keep its offices open on Monday and would not issue any updates providing further details on the decisions," Gale wrote in her post, in contrast to past company-wide layoffs. Staff members were asked to help with a quicker hiring process for machine learning engineers and other "business critical" technical positions in a separate message posted by Peng Fan, VP of technical for Monetization, on Friday.

Why are layoffs happening at Meta?

Meta is reducing jobs in some areas. But they are also hiring more machine learning engineers to boost its AI capabilities. The company is prioritising automation and AI-driven content recommendations across its platforms. Meta is facing tough competition. Companies like TikTok, Google, and Microsoft, especially in AI and digital advertising are giving meta a tough competition. No, Meta is not losing money, but in order to remain competitive, it is simplifying its business practices. The business is concentrating on AI and emerging technologies while implementing strategic layoffs. Thus, it is a strategy that Meta is following through layoffs. The rise of AI-powered search and advertising is forcing Meta to rethink its workforce structure. AI replaces traditional jobs while also opening up new ones in data science and machine learning.