Meta has cut approximately 600 jobs from its artificial intelligence division, marking a significant shift in the company’s AI strategy despite its massive investments in the field. The layoffs, reported by Axios and confirmed by a Meta spokesperson to CNBC, primarily affect employees in the company’s Fundamental Artificial Intelligence Research (FAIR) lab, AI infrastructure teams, and product-focused AI units. The restructuring aims to create a leaner, more agile organization by reducing bureaucratic layers and increasing individual accountability. In a memo to staff, Meta’s Chief AI Officer Alexandr Wang explained that shrinking the team would lead to fewer meetings, faster decision-making, and greater impact per employee. “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. The move comes amid a broader “year of efficiency” under Meta CEO Mark Zuckerberg, who has repeatedly emphasized that “leaner is better.” However, the cuts are not a broad reduction in headcount but a targeted reorganization. The company claims most affected employees will be encouraged to transition into other roles within Meta, leveraging their skills across different departments. Still, there’s no indication that internal placements were prioritized before the layoffs were announced. This restructuring follows a summer of aggressive AI hiring, during which Meta offered multi-million-dollar pay packages to lure top talent from rivals like OpenAI, Google, and Apple. The company reportedly hired over 50 researchers through these efforts, including high-profile recruits with significant experience. Yet, some of these hires reportedly left within weeks, citing a lack of clear direction and organizational chaos. According to the Financial Times, even long-time Meta employees have departed, highlighting internal instability despite the influx of cash and talent. Meta’s AI ambitions have been ambitious but inconsistent. The company launched its “Superintelligence” initiative to unify its AI efforts, only to dismantle it weeks later into multiple divisions. It also invested $15 billion in Scale AI, acquiring both talent and infrastructure, but has struggled to integrate or effectively deploy these resources. Meanwhile, Meta announced a $27 billion partnership with Blue Owl Capital to build Hyperion, a massive data center in Louisiana expected to cover a significant portion of Manhattan’s footprint—further underscoring its commitment to AI infrastructure. Despite these massive financial outlays, the company appears to be grappling with how to organize its AI operations effectively. The layoffs suggest that Meta may have overinvested in people and structure without a clear long-term vision. Instead of building a sustainable AI ecosystem, it seems to be reacting to internal inefficiencies and external competition with rapid, sometimes contradictory, moves. The affected employees are now left to navigate a shifting landscape, with little clarity on how their roles fit into Meta’s evolving AI strategy. While the company maintains that it values its workforce and will support internal mobility, the timing and execution of the cuts raise questions about leadership and strategic coherence. In the race to lead in artificial intelligence, Meta has spent billions and hired top talent, but its recent actions suggest it still hasn’t figured out how to turn those investments into a cohesive, effective AI operation. The layoffs underscore a troubling paradox: while Meta is pouring money into AI, it’s cutting the very people it needs to make those investments pay off.