Meta CEO Zuckerberg admits AI workforce mistakes, says no more layoffs

Meta chief executive Mark Zuckerberg sent an internal memo to staff acknowledging that the company's rapid shift toward artificial‑intelligence‑centric work has caused “mistakes.” He said the restructuring in May cut about 10 % of Meta’s global workforce – roughly 8,000 employees – while moving about 7,000 workers into new AI‑related roles such as model training and development.

Zuckerberg promised that no further company‑wide layoffs are expected in 2026 and announced steps to improve stability. The firm will boost budgets for off‑site events and other team‑building initiatives and will host a large‑scale hackathon in July to foster cross‑team collaboration on its latest AI models. He also said Meta will scale back the practice of giving managers extremely large spans of control; the Applied AI Engineering unit, which had a reported 50‑to‑1 ratio of individual contributors to managers, will see that ratio reduced.

The memo noted that Meta’s annual capital‑spending forecast for AI has been raised to between $125 billion and $145 billion, reflecting its continued investment in the technology despite the workforce challenges.