Zuckerberg says ‘success isn’t a given’ in memo

Meta The company’s decision to lay off 8,000 employees was necessary because “success is not a given” in the harsh and competitive environment of artificial intelligence, CEO Mark Zuckerberg told employees on Wednesday.

“Artificial intelligence is the most important technology of our lifetime,” Zuckerberg said in the memo viewed by CNBC. “Companies that lead this path will define the next generation.”

Meta declined to comment. New York Times first time reported in the employee memo.

Zuckerberg’s message to employees about the importance of artificial intelligence to the social media giant’s future underscores the sense of urgency on the day the company began its latest round of layoffs, affecting about 10% of its workforce.

The social media giant announced to employees in April that it would carry out a major layoff the following month, while canceling plans to fill 6,000 open positions. The company sent a memo to workers at the time, stating that the layoffs were aimed at helping offset investments in other areas such as artificial intelligence.

In addition to the layoffs, about 7,000 employees will be moved to new AI-focused roles, according to a person familiar with the move who spoke on condition of anonymity to discuss internal matters.

While the layoffs will affect multiple departments, the AI ​​infrastructure, its underlying models, and the teams and units focused on monetizing AI are expected to be preserved, CNBC previously reported.

“It’s always sad to say goodbye to the people who contributed to our mission and to building this company,” Zuckerberg said in his note Wednesday, adding that he expressed his “gratitude to everyone leaving today for all the hard work you put in to serve our community.”

“We are transforming our company to make it the best place for talented people to make the biggest impact,” Zuckerberg said. “People tell us they appreciate the ability to take more ownership and realize their vision with less bureaucracy and management.”

The layoffs come at a time of intense concern for Meta employees, as Facebook’s parent company has already made several layoffs this year. Another potential round is expected in August, and would be followed by another in the fall, sources previously told CNBC.

Data provided by blind anonymous professional networking service revealed that Meta’s overall rating by staff has fallen by 25% in the period from a peak in the second quarter of 2024, with a 39% drop in the culture score.

Zuckerberg said in his note Wednesday that executives “do not anticipate any further companywide layoffs this year” and that he “wants to acknowledge that we have not been as clear in our communication as we would have liked, and that is an area where I want to make sure we improve.”

In January, Meta laid off nearly 1,000 employees at the company’s Reality Labs unit, followed by a layoff in March that affected hundreds more employees. Meta also said in March that it planned to move away from third-party vendors and contractors tasked with content moderation duties in favor of AI.

Meta isn’t the only company making major layoffs amid the AI ​​boom.

Cisco It announced last week that it would lay off approximately 4,000 employees, and CEO Chuck Robbins said in an accompanying speech: blog post “The companies that will win in the age of AI will be those with the focus, urgency, and discipline to continually shift investments to areas where demand and long-term value creation are strongest.”

Microsoft announced in April that it planned to offer voluntary purchases for the first time in the history of the technology giant. About 7 percent of the company’s U.S.-based employees are eligible for the benefits, according to a person familiar with the plans.

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