Is Meta shifting its AI Strategy as it's laying of 600 AI positions?
- Niv Nissenson
- Oct 27
- 2 min read
Meta is cutting roughly 600 positions across its Superintelligence Labs division. This is a major restructuring that will touch long-standing groups like FAIR (Facebook AI Research) as well as product-related AI and infrastructure teams. The move, first reported by Axios and confirmed by Reuters, marks one of Meta’s largest AI reorganizations since its initial investment in the field more than a decade ago.
The layoffs come just a day after Meta announced a $27 billion financing deal with Blue Owl Capital, its largest-ever private capital agreement, aimed at funding a massive data center expansion. Analysts say the move allows Meta to pursue its AI ambitions while shifting much of the upfront cost and risk to external capital.
A Strategic Retrenchment
Meta’s Superintelligence Labs was created in June 2025 to consolidate the company’s sprawling AI efforts after a poor reception for its Llama 4 model and several high-profile staff departures. CEO Mark Zuckerberg personally led the rebuilding effort, recruiting aggressively to reinvigorate the team and establish a more competitive AI foundation.
A newly formed TBD Lab, composed of “a few dozen” researchers working on next-generation foundation models, will remain untouched, signaling where Meta’s long-term focus may now lie. Chief AI Officer Alexandr Wang said the reorganization would “streamline decision-making” and expand the scope of remaining roles.
The Andrew Tulloch Factor
The restructuring comes just a couple of weeks after Meta hired Andrew Tulloch, co-founder of Thinking Machines Labs, in what was widely viewed as a major talent acquisition. Tulloch had reportedly turned down a $1.5 billion compensation offer earlier this year before ultimately joining Meta, a move that now looks increasingly strategic as the company doubles down on elite research leadership while pruning its broader teams.
TheMarketAI.com Take
Meta’s latest moves point to an erratic, or at least rapidly evolving, AI strategy. Just months after rebuilding its AI organization and expanding headcount, the company is now scaling back sharply, even as it ramps up infrastructure spending through external financing. The move likely closed down several R&D teams.
This could suggest a strategic pivot. Closing down parts of FAIR and other AI infrastructure teams hints that Meta may be stepping away from experimental R&D projects in favor of fewer, larger bets. Perhaps it feels it cannot catch up to the current LLM leaders.
