Meta Reorganizes Around AI as Layoffs Hit U.S Workforce

Meta is moving thousands of employees into AI-focused teams while cutting 10% of its workforce as part of a broader organizational overhaul. The restructuring comes as new labor data shows AI-exposed occupations across the U.S. continue to lose jobs.

By Samantha Reed Edited by Maria Konash Published:
Meta Reorganizes Around AI as Layoffs Hit U.S Workforce
Meta shifts thousands of employees into AI teams while cutting 10% of staff as AI-exposed jobs continue to decline in the U.S. Image: Dima Solomin / Unsplash

Meta is moving aggressively to restructure its workforce around artificial intelligence, combining large-scale layoffs with a sweeping internal reorganization aimed at accelerating AI automation across the company.

In an internal memo reviewed by Reuters, Meta Chief People Officer Janelle Gale told employees the company plans to transfer roughly 7,000 workers into new AI-related initiatives while simultaneously eliminating managerial positions and flattening organizational structures. The changes accompany previously reported plans to cut about 10% of Meta’s workforce this week, with additional reductions expected later this year.

The restructuring is part of a broader push by Meta to integrate AI agents into both its products and internal operations. According to the memo, many teams have redesigned their structures around what the company calls “AI native design principles,” emphasizing smaller groups, reduced management layers, and more autonomous execution.

Meta had nearly 78,000 employees at the end of March, according to company filings. Reuters previously reported that the combination of layoffs, transfers, and eliminated roles could ultimately affect roughly 20% of the company’s workforce. Employees in North America were instructed to work remotely on Wednesday as the restructuring moves forward.

AI Units Become the Center of Meta’s Strategy

Several of the new teams absorbing transferred employees are directly tied to Meta’s internal AI automation initiatives. These include Applied AI Engineering and Agent Transformation Accelerator XFN, groups previously introduced by Meta CTO Andrew Bosworth as part of the company’s broader “AI for Work” strategy.

The teams are focused on developing AI agents capable of autonomously performing tasks currently handled by employees. Another unit, Central Analytics, is expected to monitor productivity and support development of AI-driven workplace systems. Gale also referenced a forthcoming initiative called Enterprise Solutions, though details have not yet been disclosed.

The changes have triggered significant internal backlash. Employees have reportedly protested the restructuring through flyers at company offices and criticism posted on Meta’s internal communication platform, Workplace. More than 1,000 employees have signed a petition opposing the use of mouse-tracking software that Meta is reportedly deploying to help train AI systems on how humans interact with computers.

Staff frustration has also grown over management’s handling of the layoffs. According to Reuters, some employees responded to executive posts on Workplace with elephant images to symbolize what they described as the “elephant in the room” after company leadership remained publicly silent about the planned cuts for weeks.

AI’s Growing Impact on Employment

Meta’s restructuring coincides with broader signs that AI adoption is beginning to reshape labor markets across the United States.

New Bureau of Labor Statistics data published Friday showed that 18 occupations identified as highly exposed to AI experienced a combined employment decline of 0.2% between May 2024 and May 2025, compared with overall U.S. employment growth of 0.8% during the same period.

Excluding medical support roles benefiting from healthcare-sector growth, employment across the remaining AI-exposed occupations fell 1.6% for the second consecutive year. Some of the sharpest declines were recorded among customer service representatives, secretaries, clerks, and sales-related positions.

Goldman Sachs economists also reported this week that occupations vulnerable to AI substitution are now seeing job openings fall below pre-pandemic levels, while less exposed roles are declining more gradually.

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