Zuckerberg tells Meta employees the layoffs are about capex, not AI productivity

At a Thursday town hall, the Meta CEO made the explicit trade-off he had previously left implicit: ‘We basically have two major cost centres in the company: compute infrastructure and people-oriented things.’ The chief people officer also declined to rule out additional layoffs

Meta CEO Mark Zuckerberg attributed the company’s upcoming layoffs to its rising capital expenditure on AI infrastructure and declined to rule out further job cuts during a town hall meeting with employees on Thursday, Reuters reported. The session was the first time Zuckerberg has addressed staff directly about the layoffs.

“We basically have two major cost centres in the company: compute infrastructure and people-oriented things,” Zuckerberg told employees, according to details of the session shared with Reuters.

“If we’re 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 ...