In a recent memo, Andrew Bosworth, Meta’s chief technology officer, acknowledged the company’s missteps in its restructuring efforts focused on artificial intelligence. Addressing staff, he expressed concerns about the state of morale within the organization, describing it as among the lowest in two decades due to significant workforce reductions and recent internal changes.
To improve overall conditions, Meta has increased budgets for travel, events, and perks such as snacks, as reported by Wired. This comes on the heels of notable layoffs; in May, the company cut approximately 8,000 positions, accounting for around 10% of its global workforce. These job reductions are part of a larger trend initiated in late 2022 when Meta slashed about 11,000 roles following a period of expansive hiring during the pandemic. This year alone, the tech giant has continued this trend, reducing an additional 10,000 jobs as part of its self-described “Year of Efficiency.”
During an internal session, Bosworth compared the current atmosphere at Meta to the turbulent times surrounding the Cambridge Analytica scandal, suggesting that discontent among employees is rising. In his memo, he admitted that the company had “undermined the trust” employees had in their potential for career growth and the value of their expertise. He committed to enhancing transparency from leadership, offering better support for taking strategic risks, and rekindling the company’s original culture that attracted many of its employees.
In light of the recent AI-related transitions, those reassigned to new teams focusing on AI initiatives have been given the opportunity to explore other roles within the company if they prefer to leave their current positions. As Meta reassesses its strategy to prioritize AI development, it has also scrapped plans to fill thousands of open positions, indicating a continued focus on reallocating resources to support its AI ambitions.
In the marketplace, shares of Meta closed up 1% during regular trading hours but saw a slight dip of 0.3% in after-hours trading. Retail sentiment on Stocktwits remains bearish, with META stock having fallen approximately 8% this year. The ongoing restructuring and layoffs have fostered an atmosphere of uncertainty among retail investors, underscoring the challenges Meta faces as it navigates its path forward in the competitive tech landscape.
