In a surprising turn of events, Meta has announced the layoff of around 600 employees from its AI Superintelligence Labs — a division that had only recently undergone a massive hiring spree. The decision, first reported by Bloomberg, underscores CEO Mark Zuckerberg’s effort to make Meta’s AI operations more agile and efficient amid intensifying competition with tech giants like OpenAI, Google, and Anthropic.

The layoffs were communicated internally on October 22, marking a sharp pivot from Meta’s earlier strategy of aggressive expansion. The AI Superintelligence Labs had attracted top talent from Apple, OpenAI, Google, and Elon Musk’s xAI, reflecting Meta’s deep commitment to building a world-class AI research hub. Yet, the move to scale back suggests that the company’s leadership now seeks a leaner structure that prioritizes speed and decisiveness over sheer size.

Interestingly, Meta’s elite TBD Lab, composed largely of its star hires, remains unaffected by the layoffs. According to company insiders, the restructuring aims to flatten management layers and improve decision-making processes. “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,” wrote Alexandr Wang, Meta’s Chief AI Officer, in a memo cited by Bloomberg.

The reorganisation reflects a growing trend in Silicon Valley — moving fast, trimming excess, and ensuring each role directly contributes to innovation. Wang emphasized that the company’s new approach is rooted in “efficiency,” allowing smaller teams to execute more effectively in the fast-evolving AI landscape.

Despite the layoffs, Meta is offering a silver lining to affected employees. Sources close to the matter confirmed that the company is encouraging those impacted to apply for other roles within Meta. The internal job mobility initiative indicates that this move is more about realignment than downsizing. Meta continues to recruit for specific AI projects and divisions, particularly where strategic growth is still anticipated.

This development follows an earlier hiring freeze in Meta’s AI unit, reported in August by a popular newspaper. At that time, Meta described the pause as a step in “organisational planning,” aiming to stabilise its rapidly growing AI division. Now, that restructuring has materialised — complete with significant workforce adjustments.

Mark Zuckerberg’s aggressive push into artificial intelligence has drawn both admiration and criticism. Meta has poured billions into AI development, offering lucrative compensation packages — reportedly ranging between $100 million and $200 million — to attract top-tier researchers and engineers. While Zuckerberg dismissed those figures as exaggerated, he acknowledged the “high-stakes” nature of AI recruitment.

However, the rapid expansion hasn’t been without turbulence. Several high-profile hires, including Rishabh Agarwal, Avi Verma, and Ethan Knight, left Meta earlier this year — with some returning to OpenAI. Sam Altman, OpenAI’s CEO, even criticised Meta’s recruitment tactics as “distasteful.”

Zuckerberg’s latest decision signals a shift from the “hire fast” mentality to a “move faster” philosophy. As Meta recalibrates its AI ambitions, the company hopes that a leaner, sharper team will give it an edge in the relentless race to dominate the next frontier of artificial intelligence.