UPDATE: Meta’s ambitious AI overhaul is underway, resulting in significant job cuts and rising internal tensions as CEO Mark Zuckerberg accelerates the company’s transformation. Just announced, Meta has restructured its teams and laid off approximately 3,600 employees as it pivots focus toward artificial intelligence, intensifying its competition with tech giants like OpenAI and Google.
As the company navigates this “year of intensity,” Zuckerberg’s drive for rapid innovation comes with a steep cost—both financially and emotionally for employees. Meta recently invested $14 billion in AI training firm Scale AI, appointing its young founder, Alexandr Wang, as chief AI officer. However, the push for a more aggressive AI strategy has led to widespread internal dissatisfaction, with critics labeling the company’s direction as chaotic and poorly communicated.
Current and former employees have voiced concerns over a lack of cohesive strategy within the newly formed Meta Superintelligence Labs. A former employee described the atmosphere as one filled with “endless meetings” that yielded no decisive actions, leading to frustration and confusion among teams. In a stark shift from previous practices, Meta has implemented a more ruthless performance management system, raising the bar on employee evaluations and pushing out those deemed “low performers.”
This restructuring is not just about efficiency; it reflects a broader cultural shift within the company. Zuckerberg’s emphasis on “masculine energy”—a term he used to describe the new leadership approach—has sparked debates among staff about the company’s evolving values. Reports indicate that employee morale is mixed, with some feeling demoralized by the layoffs and performance pressures, while others have found optimism in the potential for groundbreaking developments in AI technologies.
The company is also reducing its investments in the metaverse, reallocating resources toward AI innovations and wearables. A spokesperson confirmed that budget cuts for the metaverse unit are under consideration, signaling a strategic pivot as Meta seeks to capitalize on AI advancements.
Despite the turmoil, Meta’s stock has shown signs of resilience, climbing 7.5% this year, albeit underperforming compared to the S&P 500 index. Analysts urge the company to articulate a clear vision that integrates its various initiatives and demonstrates consistent growth to regain investor confidence.
Looking ahead, Meta is expected to continue refining its AI strategy as it competes for top talent and navigates internal challenges. With employee sentiment improving slightly as of the latest internal survey conducted from October 20 to November 3, 2025, there is a flicker of hope within the company. However, many remain cautious about the future, questioning whether the aggressive pace will yield long-term benefits or further exacerbate internal divisions.
As Meta forges ahead, the tech world watches closely, aware that the outcomes of these decisions could redefine the landscape of artificial intelligence and its applications across its platforms, including Facebook, Instagram, and WhatsApp.
Stay tuned for more updates as this story develops.
