Zuckerberg Attributes Meta Layoffs to AI Spending

New York - Meta Platforms Chief Executive Mark Zuckerberg attributed the company's planned layoffs to rising capital spending on artificial intelligence infrastructure, while declining to rule out additional job cuts, during an internal town hall with employees on Thursday.

Zuckerberg explained the decision by highlighting the company's two primary cost centers: compute infrastructure and personnel. "We basically have two major cost centres in the company compute infrastructure and peopleoriented things," he said, according to participants who shared details of the session. "If were investing more in one area to serve our community, then that means we have less capital to allocate to the other. So that means we do need to take down the size of the company somewhat."

The comments marked Zuckerberg's first direct address to staff on the layoffs since reports emerged in March. Meta plans to cut about 10 percent of its workforce on May 20, with further reductions scheduled for the second half of the year. Executives have confirmed the initial round but offered no details on subsequent plans.

Zuckerberg emphasized that the layoffs stem from financial trade-offs rather than the...