Zuckerberg says ‘success isn’t a given’ in memo

Meta CEO Mark Zuckerberg told employees in a memo Wednesday that the company’s decision to lay off 8,000 employees is necessary because “success isn’t a given” in the fierce and competitive space of artificial intelligence.

“AI is the most consequential technology of our lifetimes,” Zuckerberg said in the memo, which was viewed by CNBC. “The companies that lead the way will define the next generation.”

Meta declined to comment. The New York Times first reported on the employee memo.

Zuckerberg’s message to employees about the significance of AI for the future of the social media giant underscores the sense of urgency at the company on the day it began its latest round of layoffs, which hit about 10% of the company’s workforce.

The social media giant revealed to employees in April that it would conduct a major round of layoffs the following month while nixing plans to fill 6,000 open positions. The company told workers in a memo at the time that the job cuts were intended to help offset investments into other areas like AI.

In addition to the job cuts, about 7,000 employees will be moved into new AI-focused roles, according to a person familiar with the move, who asked not to be named in order to discuss internal matters.

Although the layoffs will hit numerous departments, the teams and units focused on AI infrastructure, foundation models and AI monetization are expected to be protected, CNBC previously reported.

“It’s always sad to say goodbye to people who have contributed to our mission and to building this company,” Zuckerberg said in the Wednesday memo, adding that he expresses his “gratitude to everyone leaving today for all of the hard work you’ve put into serving our community.”

“We’re transforming our company to make sure it will always be the best place for talented people to have the greatest impact,” Zuckerberg said. “People tell us that they appreciate the ability to take greater ownership and execute their vision with less bureaucracy and management to navigate.”

The job cuts come at a time of intense anxiety for Meta employees, as the Facebook-parent has already conducted several layoffs this year. Another potential round is expected in August, followed by another during the fall, sources previously told CNBC.

Data provided by the Blind anonymous professional network service revealed that Meta’s overall rating by staffers sank 25% from a peak in the second quarter of 2024 to the current period, with a 39% drop in its culture rating.

Zuckerberg said in the Wednesday memo that executives “do not expect other companywide layoffs this year” and that he wants “to acknowledge that we haven’t been as clear as we aspire to be in our communication, and that’s one area I want to make sure we improve.”

In January, Meta fired roughly 1,000 employees in the company’s Reality Labs unit, which was followed by a March layoff round that affected hundreds more staffers. Meta also said in March that it plans to shift away from third-party vendors and contractors tasked with content moderation tasks in favor of AI.

Meta isn’t the only company conducting major layoffs amid the AI boom.

Cisco said last week that it would fire roughly 4,000 employees, with CEO Chuck Robbins saying in an accompanying blog post that “The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest.”

Microsoft said in April that it plans to offer voluntary buyouts for the first time in the tech giant’s history. Roughly 7% of the company’s U.S.-based workers are eligible, according to a person familiar with the plans.

WATCH: Meta’s planned cuts hits company morale.