Meta Shares Fall 1.65% on $6.7B Volume as AI Overhaul Sparks Leadership Turmoil and High Turnover

On August 29, 2025, Meta (META) shares declined by 1.65%, trading with a volume of $6.71 billion, securing the eighth-highest trading volume on the day. The stock’s performance coincided with ongoing internal turbulence in the company’s AI division under CEO Mark Zuckerberg.

Zuckerberg has initiated a major overhaul of Meta’s leadership structure, prioritizing AI development by recruiting high-profile figures such as Shengjia Zhao (co-creator of ChatGPT), Alexandr Wang (former Scale AI CEO), and Nat Friedman (ex-GitHub leader). However, the rapid hiring spree has been accompanied by early departures, including Zhao’s brief threat to return to OpenAI and Avi Verma’s failure to report for his first day. These exits highlight integration challenges as the company attempts to align newly hired executives with its long-term vision.

The restructuring has led to the formation of the Meta Superintelligence Lab (MSL), now divided into four distinct teams. Internal sources indicate friction between Zuckerberg and new hires over timelines for achieving “superintelligence,” with some executives reportedly struggling to adapt to Meta’s operational scale and bureaucratic processes. The lab has also shifted focus from public model releases to proprietary research, signaling a strategic pivot in its AI roadmap.

Meta attributes the attrition to normal turnover but acknowledges the complexity of managing a high-stakes, fast-moving research environment. Longtime employees, including generative AI veterans Chaya Nayak and Loredana Crisan, have also left recently, underscoring the disruptive nature of the leadership changes. Industry observers note that the influx of new talent has introduced both innovation and internal friction, with one investor describing the dynamic as “big men on campus.”

Meta remains committed to its AI ambitions, emphasizing the need to deliver on its superintelligence goals despite the challenges. The company continues to attract top talent through competitive incentives, though the recent churn underscores the difficulties of managing a high-stakes, rapidly evolving initiative.