Meta Staff Liquidate Perks as 8,000 Job Cuts Loom Amid AI Pivot
Employees at the social media giant are rapidly utilising annual benefits and audio credits ahead of mass layoffs, while remaining staff face mandatory transfers to artificial intelligence teams.
Meta employees are urgently cashing in on annual flexible benefits and audio gear credits ahead of mass layoffs affecting approximately 8,000 staff members, representing 10 per cent of the workforce. The cuts, scheduled for Wednesday, coincide with record profits as CEO Mark Zuckerberg prioritises investment in AI data centres. Morale has reportedly declined due to the layoffs, mandatory transfers to AI teams, and new surveillance software. Management has encouraged staff to avoid offices on the day notices are issued.
According to a company-wide memo sent on Monday, layoff notifications will be distributed to personal and corporate email addresses at 4am local time. In response, staff are scrambling to utilise an annual $2,000 flexible benefit and a triennial $200 credit for audio equipment. Several employees described a rush to purchase items such as Apple AirPods before the benefits expire, while others have been saving performance reviews and pay stubs in preparation for the restructuring.
The workforce reduction is part of a broader strategic shift, with around 7,000 remaining staff members being transferred to AI initiatives and managers converting to individual contributor roles. This internal restructuring, reported by Reuters and independently confirmed by WIRED, brings the total number of employees affected by either termination or role changes to 20 per cent of the current workforce. Some teams have been informed they will not be impacted by the changes.
Morale at the company has sunk to unprecedented levels, with 16 current and former employees reporting significant distress. Frustration has been compounded by mandatory transfers to new AI teams and the rollout of surveillance software designed to track laptop usage to train AI models. Staff have been described as paralyzed, coasting, or panicked, with many deserting offices to gather offsite at bars and restaurants in New York and Menlo Park to commiserate and polish their résumés.
This marks the fourth large round of layoffs since 2022, following a "year of efficiency" drive in 2023. While the current cuts are smaller than previous rounds, they are drawing scrutiny amid broader societal anxiety regarding the impact of AI on employment. CEO Mark Zuckerberg has stated that the restructuring is necessary to free up cash for AI data centre investments, asserting that AI technologies will augment human labour and allow the company to perform effectively with fewer employees. Meta did not immediately respond to a request for comment.
