Meta Platforms, Inc. (NASDAQ:META) CEO Mark Zuckerberg has reportedly acknowledged that the company has "made mistakes" as it restructures its workforce around artificial intelligence.
Zuckerberg Acknowledges Challenges In Meta’s AI Transformation
According to an internal memo reviewed by Reuters, Zuckerberg told employees that the rapid pace of AI development has created significant organizational challenges for the company.
“Given the complexity of these changes, we’ve made mistakes and will almost certainly make more,” Zuckerberg wrote.
He added that Meta is focused on providing as much stability as possible amid ongoing changes, while cautioning that “the world is changing in ways that are out of our control.”
The CEO also reiterated that Meta does not currently anticipate additional companywide layoffs this year.
Meta Reassigned 7,000 Employees After Workforce Cuts
The comments come after Meta’s major restructuring in May, when the company cut roughly 10% of its global workforce and reassigned about 7,000 employees to AI-related initiatives.
Zuckerberg said Meta intends to create new opportunities for workers involved in training AI models and may move employees back into previous functions if organizational changes prove ineffective.
“By creating important new roles for people, this also allowed us to shrink the size of teams knowing that if we make mistakes in some places, then we could transfer some people back,” he said.
Meta did not immediately respond to Benzinga's request for comments.
AI Spending Surge And Management Concerns
The memo also addressed employee concerns about management structures. Meta plans to reduce overly broad manager oversight responsibilities after some AI teams reportedly operated with contributor-to-manager ratios as high as 50-to-1.
To strengthen collaboration, Meta is increasing spending on team-building efforts, including larger budgets for offsite events and a companywide hackathon scheduled for July.
The restructuring comes as Meta ramps up its AI investments. In April, the company raised its annual capital expenditure forecast to between $125 billion and $145 billion as it competes in the rapidly evolving AI race.
Price Action: Shares of META closed Friday at $566.98, down 0.26% and edged up 0.37% to $569.06 in after-hours trading, according to Benzinga Pro.
Meta ranks in the 88th percentile for growth in Benzinga Edge Stock Rankings, even as its shares remain under pressure across key time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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