Meta(META.US) begins downsizing "underperforming" employees to prioritize the recruitment of AI talent.

According to Zhitong Finance, Meta (META.US) began notifying employees of layoffs on Monday, starting a plan to fire thousands of people as it fights "underperforming" workers and seeks new talent to lead the AI race.

According to insiders, Meta informed the laid-off employees by email, offering them 16 weeks of pay and 2 weeks of pay for every year of service as part of their severance package. The insiders said that eligible employees would still receive bonuses and stock awards as part of the upcoming reward cycle later this month.

As reported by Zhitong Finance in early January, Meta CEO Mark Zuckerberg told employees that the company would lay off 5% of its workforce, or 3,600 people, focusing on those "falling short of expectations." Zuckerberg said last month that affected US employees would be notified by February 10, while international employees would be informed later. In another message to managers, Zuckerberg said the layoffs would create headcount for the company to hire "the best talent."

Meta has been cutting jobs in recent years. The company laid off thousands of employees in 2022 and 2023 as part of an efficiency drive. The latest round of layoffs is expected to be completed before the end of the performance cycle in February. Currently, Meta is trying to beat competitors such as OpenAI and DeepSeek in a rapidly developing AI race.

Zuckerberg told investors at the end of January that Meta expects to eventually spend billions of dollars on AI infrastructure. The California-based company is applying AI to its applications and business units, from social media platforms such as Instagram and Facebook to VR glasses.