Meta’s ambitious Artificial Intelligence project, AI Superintelligence Labs, is reportedly undergoing significant organizational changes, including the dismissal of approximately 600 employees. According to a report by Bloomberg, which cited an internal memo, the move aims to enhance competitiveness and operational efficiency within the unit. Employees were notified of the job cuts on October 22. Notably, the newly established TBD Lab group, which comprises many of Meta’s highly paid recent hires, remains unaffected by these reductions.

Alexandr Wang, Meta Platforms’ Chief AI Officer, explained in the memo that the downsizing is designed to streamline decision-making and reduce bureaucratic bottlenecks. “By reducing the size of our team, fewer conversations will be required to make a decision, and each person will be more load-bearing and have more scope and impact,” Wang stated. While 600 roles are being eliminated, Meta is reportedly encouraging affected employees to apply for positions in other departments, signaling a continued commitment to expanding its AI teams despite the restructuring, according to a source familiar with the matter.

These layoffs come just months after Mark Zuckerberg’s substantial investment in the AI sector, including billion-dollar acquisitions of key industry players and top-tier talent. This aggressive spending underscores Meta’s determination to stay competitive in the intensifying AI race against rivals such as OpenAI and Alphabet Inc.’s Google. A significant component of this strategy was the $14.3 billion investment in data-labeling startup Scale AI, which facilitated Wang’s transition to Meta, where he now leads its AI initiatives. Wang—who was visibly emotional when announcing his departure from Scale AI, oversaw Meta’s acquisition of a 49% stake in the company, marking a pivotal step in Meta’s AI evolution.

Despite reports of extraordinarily high pay packages, some estimated between $100 million and $200 million for members of Meta’s “Superintelligence” team, Zuckerberg dismissed these claims as grossly exaggerated. He emphasized that while Meta continues to offer competitive compensation to attract the best minds in artificial intelligence, the company’s true focus lies in building transformative technology that can redefine the boundaries of machine learning and human collaboration.