The company that bet everything on AI just showed 600 employees the door. Here's what it means for the future of work.
The Shocking Reality
On October 22, 2025, Meta dropped a bombshell that sent shockwaves through Silicon Valley: approximately 600 employees from its AI Superintelligence Labs are being laid off. The termination date? November 21, 2025.
But here's where it gets truly bizarre—this isn't a company struggling to stay afloat. This is Meta, a tech giant that's spending up to $72 billion on AI infrastructure in 2025 alone. A company building data centers so massive they could cover significant portions of Manhattan. A company that just invested $14.3 billion in Scale AI earlier this year.
So why fire the very people building your AI future?
The Numbers Don't Add Up (Until They Do)
Let's break down the paradox:
What Meta is spending on AI:
- $60-72 billion on AI infrastructure in 2025
- $10 billion deal with Google for cloud services
- $14.2 billion deal with CoreWeave for computing power
- $27 billion financing deal with Blue Owl Capital for data centers
- Hundreds of millions in signing bonuses to poach top AI talent
What Meta is cutting:
- 600 jobs from Superintelligence Labs
- Roles primarily from FAIR (Facebook AI Research) and product teams
- Employees who've been with the company for years
The workforce that remains in Superintelligence Labs now sits at just under 3,000 people. But here's the kicker: the newly formed "TBD Lab"—comprising Meta's most expensive recent hires—wasn't touched at all.
The Real Story: Old Guard vs. New Money
This isn't just about cutting costs. It's about something far more calculated—and arguably more ruthless.
According to internal sources, CEO Mark Zuckerberg had grown frustrated with Meta's AI progress, especially after the lukewarm reception to its Llama 4 models in April. His solution? Bring in the "dream team"—a collection of elite AI researchers and engineers poached from competitors like OpenAI, with signing bonuses reportedly as high as $100 million.
The message is clear: Zuckerberg is betting on expensive new talent over legacy employees. The old AI division, which sources described as "bloated," is being gutted to make room for a leaner, more aggressive approach led by Chief AI Officer Alexandr Wang.
Wang himself was part of the massive spending spree, joining Meta through the company's $14.3 billion investment in his startup Scale AI. In an internal memo, he justified the cuts by saying they would "streamline decision-making" and make each remaining person "more load-bearing."
Translation: We're doing more with less people, and those who remain better deliver results.
The Elite Who Survived
While 600 workers received termination notices, Meta's newest hires remain untouched. The company's TBD Lab—described as "a few dozen" elite researchers developing next-generation AI models—continues hiring aggressively.
The roster of protected talent reads like a who's who of AI royalty:
- Former GitHub CEO Nat Friedman
- Safe Superintelligence co-founder Daniel Gross
- Apple's former AI lead Ruoming Pang
- Thinking Machines Lab co-founder Andrew Tulloch
These are the people Meta believes will win the AI race. Everyone else? Apparently expendable.
What This Means for YOU
If you think this is just another tech company drama, think again. Meta's layoffs reveal three brutal truths about the future of work in the AI era:
1. Experience Doesn't Guarantee Security
Many of those laid off were veteran employees from FAIR, Meta's foundational AI research unit established in 2013. They built the foundation that Zuckerberg is now capitalizing on—and they're being shown the door. The lesson? In the AI age, what you did yesterday matters less than what you can deliver tomorrow.
2. The "AI Will Create Jobs" Narrative Is Complicated
There's dark irony in an AI company firing AI workers. If Meta—a company literally building artificial intelligence—can't justify keeping 600 AI professionals employed, what does that say about AI's impact on the broader job market?
The company is simultaneously:
- Building AI engineers that will "contribute increasing amounts of code"
- Firing human engineers who currently write code
- Claiming this will make the remaining workers "more load-bearing"
Connect the dots.
3. The AI Arms Race Has Casualties
Tech giants are locked in what's being called an "AI arms race," with companies like Microsoft, Google, Amazon, and Meta collectively spending over $200 billion on AI infrastructure. But unlimited budgets don't translate to unlimited patience.
When results don't meet expectations—as happened with Meta's Llama 4 launch—leadership pivots fast and hard. And workers become collateral damage.
The Bigger Picture: Is This The AI Bubble Bursting?
Industry analysts are increasingly worried we're witnessing early signs of an AI bubble. Meta's contradictory behavior—spending billions while cutting hundreds of jobs—fits a troubling pattern:
- Intel, Microsoft, Google, and Amazon have all reduced headcount in 2025
- Companies are consolidating teams and eliminating "redundancies"
- Despite massive investments, profitable AI products remain scarce
Meta generates the vast majority of its revenue from digital advertising, not AI. Its Reality Labs division lost $4.53 billion in Q2 2025 alone. The company is betting the farm on AI, but the crops haven't come in yet.
Chief AI Officer Wang's memo talks about creating "smaller, more focused teams" that can "move with clarity and speed." But analysts warn this approach risks burning out remaining workers while the company chases an elusive "superintelligence" that may be years—or decades—away.
The Human Cost Nobody Talks About
Lost in all the talk of billions spent and strategic pivots are the 600 real people who received this message on October 22:
"During this time, your internal access will be removed and you do not need to do any additional work for Meta. You may use this time to search for another role at Meta."
Meta is offering 16 weeks of severance plus two additional weeks for every year of service. But for many of these workers—who dedicated years building Meta's AI capabilities—the financial package doesn't ease the sting of being deemed expendable.
They're being encouraged to apply for other positions within Meta, though whether those roles materialize remains to be seen. After all, if the AI division is "bloated," what other departments are next on the chopping block?
What Happens Next?
Meta faces a defining moment. Zuckerberg has assembled what he calls his "dream team" and is throwing unprecedented resources at AI development. The company's Prometheus supercluster is set to come online in 2026 with more than 1 gigawatt of computing power. The Hyperion cluster in Louisiana could scale to 5 gigawatts.
But hardware is only part of the equation. The question is whether Meta's new, leaner AI organization can deliver the breakthroughs Zuckerberg expects—and whether the "old guard" he's sidelining had institutional knowledge that can't be replaced with checkbook hiring.
The company's stock rose nearly 12% after recent earnings, suggesting investors approve of the aggressive spending. But if AI products don't start generating significant revenue soon, more layoffs could follow.
The Bottom Line
Meta's decision to fire 600 AI workers while spending tens of billions on AI infrastructure is more than corporate reshuffling. It's a warning shot about the future of work in the AI age.
Here's what we're learning:
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Loyalty doesn't pay. Even building the foundation of a company's AI efforts won't protect you if leadership decides to pivot.
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The AI gold rush has winners and losers. A select few will command astronomical salaries. Everyone else becomes a cost to be optimized.
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Job security is dead. When even AI companies are using AI to justify reducing their human workforce, no industry is safe.
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The race has just begun. Companies are willing to spend billions and fire thousands in pursuit of AI dominance. The casualties will only increase.
The people losing their jobs at Meta won't be the last. As AI becomes more capable and companies chase profitability, expect more "strategic reorganizations" that prioritize efficiency over people.
The AI revolution everyone promised? It's here. But it might not look like anyone expected.
The question now is: Are you building skills that will make you part of the "dream team" that survives—or are you part of the "bloated" workforce that gets cut?
Because in the age of AI, that distinction could define your future.
Frequently Asked Questions (FAQ)
Q: How many people did Meta lay off from its AI division?
Meta is laying off approximately 600 employees from its Superintelligence Labs division, with terminations effective November 21, 2025. This represents a significant portion of the AI workforce, leaving just under 3,000 employees remaining in the division.
Q: Why is Meta firing AI workers while spending billions on AI?
Meta is restructuring its AI division to focus on what CEO Mark Zuckerberg calls a "dream team" approach. The company is eliminating what it considers "bloated" teams from its legacy AI research units (particularly FAIR) while simultaneously spending tens of billions on infrastructure and hiring elite AI talent with massive signing bonuses. It's essentially replacing experience with expensive new talent.
Q: Which Meta AI teams were affected by the layoffs?
The layoffs primarily affected employees from FAIR (Facebook AI Research) and various product teams within Superintelligence Labs. Notably, the newly formed "TBD Lab"—comprising Meta's most recent and expensive hires—was not affected by the cuts.
Q: How much severance are laid-off Meta employees getting?
Meta is offering 16 weeks of base severance pay plus an additional 2 weeks for every year of service with the company. Employees are also being encouraged to apply for other positions within Meta during their notice period.
Q: Is Meta still hiring AI talent?
Yes, paradoxically, Meta continues to aggressively hire for its TBD Lab and other priority AI projects. The company has been offering signing bonuses reportedly as high as $100 million to attract top-tier AI researchers from competitors like OpenAI, Google, and other tech giants.
Q: What is Meta's Superintelligence Labs?
Superintelligence Labs is Meta's AI research division focused on developing advanced artificial intelligence. It includes teams working on large language models (like Llama), AI infrastructure, and cutting-edge AI research. The division was created as part of Meta's massive pivot toward becoming an AI-first company.
Q: Who is Alexandr Wang and what's his role in this?
Alexandr Wang is Meta's Chief AI Officer who joined through Meta's $14.3 billion investment in his startup, Scale AI. He's been tasked with restructuring Meta's AI efforts and sent the internal memo justifying the layoffs as necessary to "streamline decision-making" and create "smaller, more focused teams."
Q: How much is Meta spending on AI in 2025?
Meta's AI spending in 2025 is staggering: $60-72 billion on AI infrastructure alone, plus major deals including $10 billion with Google for cloud services, $14.2 billion with CoreWeave for computing power, and $27 billion in financing for data center construction. This doesn't include the massive signing bonuses for new AI talent.
Q: What happened with Meta's Llama 4 AI model?
Llama 4, released in April 2025, reportedly received a lukewarm reception that frustrated CEO Mark Zuckerberg. This disappointment is cited as one of the key factors that led to the restructuring of the AI division and the subsequent layoffs.
Q: Are other tech companies also laying off AI workers?
Yes, the trend extends beyond Meta. Intel, Microsoft, Google, and Amazon have all reduced headcount in 2025 despite massive AI investments. The pattern suggests the tech industry is consolidating and eliminating redundancies as companies chase profitability in the AI space.
Q: Does this mean AI is replacing AI workers?
There's certainly irony in the situation. Meta is building AI systems that "contribute increasing amounts of code" while simultaneously reducing its human engineering workforce. While the company frames this as organizational efficiency, it raises questions about AI's role in displacing even highly skilled tech workers.
Q: What does this mean for the AI job market?
The layoffs signal that job security in AI isn't guaranteed, even at companies betting their future on the technology. Experience matters less than immediate results, and companies are willing to replace entire teams if they believe new talent can deliver faster. For job seekers, it suggests focusing on cutting-edge skills and demonstrable results over tenure.
Q: Is this a sign the AI bubble is bursting?
Not necessarily bursting, but potentially deflating. Companies are spending record amounts on AI infrastructure while simultaneously cutting costs elsewhere. The disconnect between massive investments and limited profitable AI products has analysts concerned. Meta's behavior—spending billions while firing hundreds—exemplifies this tension.
Q: What is Meta's Reality Labs and how is it related?
Reality Labs is Meta's division focused on virtual and augmented reality (metaverse) projects. It lost $4.53 billion in Q2 2025 alone. These massive losses put pressure on other divisions to show profitability, which may have contributed to the AI restructuring and cost-cutting measures.
Q: Will Meta have more layoffs in the future?
While nothing is confirmed, the pattern suggests more cuts are possible if AI products don't start generating significant revenue soon. Chief AI Officer Wang's emphasis on "smaller, more focused teams" and the company's ongoing losses in other divisions create conditions where additional "efficiency" measures could follow.
Q: How can I protect my job in the AI era?
Based on Meta's decisions, here are key strategies:
- Stay cutting-edge: Focus on the newest AI technologies and methodologies
- Show measurable results: Document your impact with concrete metrics
- Be adaptable: Demonstrate ability to pivot quickly as technology evolves
- Build irreplaceable expertise: Become the go-to person for critical knowledge
- Network strategically: Maintain connections across the industry for opportunities
Q: Should I still pursue a career in AI?
Yes, but with eyes wide open. AI remains one of the fastest-growing fields with high compensation for top talent. However, job security isn't guaranteed even at leading AI companies. Focus on building skills that are in high demand, stay updated with the latest developments, and be prepared for a highly competitive, rapidly changing landscape.
What do you think about Meta's decision? Are we seeing the beginning of an AI-driven job crisis, or is this just standard Silicon Valley chaos? Drop your thoughts in the comments—this conversation is far from over.
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