Amid the ongoing wave of layoffs in the tech industry, Mark Zuckerberg has offered a justification for Meta Platforms’s recent job cuts. At a company town hall on Thursday, April 30, the CEO cited increased capital spending for AI as the key driver of its planned layoffs.
“If we’re investing more in one area to serve our community, then that means we have less capital to allocate to the other. So that means we do need to take down the size of the company somewhat,” he said according to a report in Reuters. He further added that Meta has two major cost centres – compute infrastructure and ‘people-oriented things.’
Last month the company had announced that it will be laying off around 8,000 employees as it accelerated its spending on AI and related infrastructure. However, in his town hall meeting, Zuckerberg said that the workforce cuts were not related to Meta’s reorganisation of teams around a new “AI native” structure and efforts to build AI agents.
This is the first time Zuckerberg has addressed about the layoffs since it was first reported in March. Following its job cuts of about 10 per cent from its workforce on May 20, the social media giant has plans to push additional cuts in the second half of the year.
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