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Meta may downsize AI division after spending billions to poach talent

Meta Platforms has split its Meta Superintelligence Labs into four teams as part of a major AI restructuring, but reports suggest the company is also considering staff cuts. The move comes after a year of massive hiring, where Meta poached researchers from rivals with nine-figure pay packages.

Meta may cut AI jobs after billion-dollar hiring spree, reorganises AI division into four teams
Meta may cut AI jobs after billion-dollar hiring spree, reorganises AI division into four teams
| Updated on: Aug 20, 2025 | 11:17 AM

New Delhi: Meta Platforms is once again reshaping its artificial intelligence division, and this time, downsizing is on the table. The move comes after a year of headline-making recruitment, where the company lured researchers from OpenAI, Google and other rivals with pay packages running into hundreds of millions of dollars.

According to reports from Bloomberg and The New York Times, Meta has split its newly formed Meta Superintelligence Labs (MSL) into four units. The restructuring is aimed at streamlining operations and focusing resources on what CEO Mark Zuckerberg calls “superintelligence” — AI systems capable of outperforming humans in complex tasks. But alongside the changes, company insiders say the workforce, which has grown to several thousand, may not remain that size for long.

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Meta Superintelligence Labs split into four teams

An internal memo from Alexandr Wang, Meta’s recently appointed chief AI officer and former Scale AI CEO, laid out the new structure. “Superintelligence is coming, and in order to take it seriously, we need to organise around the key areas that will be critical to reach it — research, product and infra,” Wang wrote.

The new breakdown is:

  • MSL Product – focused on consumer-facing AI like chatbots and assistants.
  • MSL Research (FAIR) – the long-standing fundamental research group co-founded by Rob Fergus, who recently rejoined from DeepMind.
  • MSL Infra – led by Aparna Ramani, handling data centres and the massive compute needed to train large models.
  • MSL Ops – overseeing internal processes and scaling.

Meanwhile, the AGI foundations team has been dissolved. Its leaders Ahmad Al-Dahle and Amir Frenkel will now shift to “strategic MSL initiatives.”

Big spending, shifting strategy

Meta’s AI spending has skyrocketed. Just last month, the company raised its annual capital expenditure forecast to between 66 billion and 72 billion US dollars (₹5.74 to ₹6.26 lakh crore). Zuckerberg has made no secret of his intent to spend “hundreds of billions” over the coming years on AI research, talent and infrastructure.

But the aggressive hiring spree, which saw Meta offer nine-figure compensation packages, has created internal tensions. The New York Times reported that some executives are expected to depart as the new structure takes shape. The company is also exploring whether it should rely partly on third-party AI models, including open-source or licensed systems, rather than only its own technology.

Downsizing under consideration

For now, no layoffs have been officially confirmed. Bloomberg reported that Tuesday’s reorganisation did not include cuts. However, The New York Times said Meta is actively considering trimming the AI division, either by cutting roles or reallocating staff. The possibility has unsettled employees, given how aggressively the company positioned AI as its growth engine only months ago.

The constant churn highlights both the urgency and the uncertainty inside Meta’s AI push. Rivals like OpenAI and Google already have advanced products in wide consumer use. Meta, still refining its systems, is racing to prove that its massive investment can deliver results before patience, both inside and outside the company, runs thin.

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