Meta Platforms, led by CEO Mark Zuckerberg, is undergoing another wave of workforce reductions as the company continues its major pivot toward artificial intelligence (AI) investments. A leaked internal memo has revealed an unconventional plan to restructure remaining teams in an effort to align with its evolving AI-focused strategy.
Workforce Cuts and Restructuring Efforts
Earlier this week, Meta laid off hundreds of employees across multiple departments, including global operations, sales, recruiting, Reality Labs, and even Facebook, according to a CNBC report. This follows prior job reductions in January, when 1,000 employees were cut from Meta's struggling Reality Labs division, a department tasked with developing virtual reality headsets, augmented reality smart glasses, and the company’s broader metaverse initiatives. Reality Labs has faced significant challenges, including $73 billion in losses since 2021 due to low consumer demand.
In some cases, employees impacted by the layoffs were offered new roles within the company, with some positions requiring relocation. A Meta spokesperson stated, "Teams across Meta regularly restructure or implement changes to ensure they’re in the best position to achieve their goals. Where possible, we are finding other opportunities for employees whose positions may be impacted."
Unveiling the "AI Pods" Initiative
As Meta seeks to adapt to its new AI-driven direction, the company has reportedly begun piloting a restructuring initiative within its Reality Labs division. According to a leaked memo obtained by Business Insider, certain employees will be rebranded as "AI builders" and organized into small, specialized groups called "AI pods."
The initial pilot affects 1,000 employees in Reality Labs who work on building developer tools. Under this structure, each "pod" will consist of a small team of AI builders with diverse specialties. These pods will be overseen by "AI pod leads", while higher-level "AI org leads" will supervise pod leads and manage tasks such as performance reviews and promotions. Notably, the promotions and performance evaluations will be supported by AI systems.
"Our ultimate goal is to drive a step change in engineering productivity and product quality", the memo states. "To achieve this, we’re fundamentally rewiring how we operate, how we are structured, and how we support each other."
While the affected team’s size will remain unchanged, the restructuring represents a significant shift in how Meta organizes its workforce to support its AI ambitions.
AI Usage Targets for Employees
The leaked memo also highlights Meta’s focus on integrating AI tools into daily employee tasks. The company has set specific goals for engineers to rely more heavily on AI for coding and other functions. By the first half of this year, Meta expects 65% of its engineers to write over 75% of their committed code using AI. Similarly, the Scalable Machine Learning organization at Meta aimed for 50% to 80% of its code to be AI-assisted as of February.
Last year, the company began tying employee performance evaluations to their use of AI tools as part of its broader push toward becoming an AI-focused organization.
Broader Industry Trends
Meta’s aggressive AI strategy comes amid a wider trend of workforce reductions and AI-driven transformation across the tech industry. Earlier this year, Amazon laid off 16,000 employees as it leaned further into automation and AI. Dell also reduced its headcount by about 10% while expanding its AI server business.
In 2026 alone, at least 71 tech companies have conducted layoffs, affecting more than 40,000 employees, according to Layoffs.fyi. A Resume.org survey revealed that 55% of U.S. companies plan layoffs this year, with AI cited as the main driver in 44% of cases. While some organizations frame these reductions around AI to project innovation, experts have warned that such narratives can damage employee trust if workloads do not significantly change.
Kara Dennison, head of career advising at Resume.org, remarked, "Saying roles are being affected by AI signals innovation and modernization, while acknowledging financial strain can raise concerns among investors, employees, and customers. However, when AI is used as a blanket explanation but workloads do not meaningfully change, trust erodes quickly."
Conclusion
Meta’s latest workforce changes underscore the company’s determination to position itself as a leader in AI-driven innovation. As the company reorganizes its teams and sets ambitious AI usage goals, it joins a growing number of tech giants leveraging artificial intelligence to reshape their operations and offset mounting costs. Whether these measures will yield the desired outcomes remains to be seen, but the implications for Meta’s workforce and the broader tech industry are already significant.
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