Meta lays off 600 from AI lab while investing $65B in superintelligence

Meta is laying off approximately 600 employees from its new AI “superintelligence” research lab, according to a memo from the company’s chief AI officer Alexandr Wang. The cuts come as Meta ramps up its massive AI investments, with CEO Mark Zuckerberg planning to spend between $60 billion and $65 billion on capital expenditures in 2025 alone.

What you should know: The layoffs target Meta’s newest AI division, which was established after a $14.3 billion investment in Scale AI, a data infrastructure company, and bringing Wang on board in June.
• The lab is dedicated to developing artificial intelligence systems that would reportedly surpass human intelligence capabilities.
• Meta owns and operates Facebook, Instagram, Threads, Messenger, and WhatsApp.

The rationale: Wang framed the cuts as a way to streamline decision-making and increase individual impact within the organization.
• “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 wrote in the memo, according to Axios.

The bigger AI picture: Meta’s layoffs coincide with the company’s aggressive push into AI-powered advertising and infrastructure development.
• The social media giant has been rolling out AI advertising features “at a dizzying rate” and is reportedly building a large Manhattan data center to power its AI offerings.
• This reflects the broader Big Tech AI arms race, with companies pouring billions into increasingly competitive artificial intelligence development.

Financial performance: Meta’s stock took a minor dip following the layoff news but largely recovered by midday Wednesday.
• Shares were trading down just 0.4% at the time of reporting.
• The company beat expectations in its second quarter 2025 earnings, with revenue of $47.52 billion versus estimates of $44.80 billion.
• Earnings per share came in at $7.14, higher than the expected $5.92.

What Zuckerberg is saying: The Meta CEO expressed ambitious goals for the company’s AI future in the quarterly earnings release.
• “We’ve had a strong quarter both in terms of our business and community: I’m excited to build personal superintelligence for everyone in the world,” Zuckerberg wrote.

Looking ahead: Meta’s third quarter 2025 financial results are scheduled for release after market close on Wednesday, October 29.