Zuckerberg Says AI Can Replace Large Teams as Meta Cuts Thousands of Jobs

Tensions are escalating in the geopolitical domain due to the crisis taking place in West Asia. Simultaneously, the use of AI technology has been causing job cuts in the global tech sector. The owner of Facebook, Meta, is planning to fire 8,000 employees on May 20. The CEO of Meta, Mark Zuckerberg, plans to split the entire organization into small groups that operate based on AI technology.

According to Zuckerberg, AI technologies allow for tasks that previously took months to be completed by many engineers to now be completed by just one or two people within a week's time. In response to this change, the company is making its teams smaller and more productive. According to Zuckerberg, this decision is not merely a cost-cutting measure, but a structural choice to prepare Meta for future challenges. The company is now implementing an ultra-flat structure, with only one manager for every 50 engineers.

Meta is spending a record $125 billion to $145 billion this year on its infrastructure, specifically data centers, custom chips, and AI model training. Chief Financial Officer Susan Lee explained that infrastructure spending has nearly doubled compared to last year, creating an imbalance between employee salaries and the company's budget. The May 20 layoffs were decided to address this imbalance. Susan Li also acknowledged that there's no clear answer to Meta's ideal size given the rapidly changing capabilities of AI. This massive expense and uncertainty has caused concern among investors, leading to a 6 percent drop in Meta shares after the earnings call.