Meta has undergone a dramatic transformation in 2025 as CEO Mark Zuckerberg pursues his vision of “personal superintelligence” and dominance in the AI arms race. The company has reorganized divisions, invested billions in AI infrastructure, and implemented aggressive performance management changes that have reshaped its culture and workforce.
The centerpiece of Meta’s AI push was a $14 billion investment in AI training company Scale AI in June, followed by hiring its 28-year-old founder, Alexandr Wang, as chief AI officer. Two months later, Meta rebranded its AI-focused team to Meta Superintelligence Labs (MSL), signaling its commitment to competing with OpenAI, Google, and other AI leaders.
The transformation hasn’t been smooth. Former employees publicly criticized Meta’s AI strategy, with ex-MSL employee Joena Zhang stating that “nobody really knew what anyone was doing” during the first half of the year. The company underwent four major reorganizations in six months, eventually dividing MSL into four teams: TBD Lab, a product team for Meta AI assistant, an infrastructure team, and the Fundamental AI Research (FAIR) lab.
Meta’s aggressive recruitment of AI talent created internal tensions, as the company offered massive compensation packages to lure researchers from OpenAI and Google’s DeepMind. This sparked rifts between existing employees and new hires, with competition over computing resources and project ownership. At least eight AI staffers left within two months of MSL’s formation, and Meta cut about 600 jobs in the division in October.
Beyond AI, Zuckerberg implemented stricter performance reviews, cutting 3,600 jobs in February after labeling them “low performers.” By May, managers were directed to place 15-20% of employees in the “below expectations” tier, up from 12-15% previously. Multiple employees described a “pressure-cooker environment” that encouraged cutthroat competition.
The company is also scaling back metaverse ambitions, considering budget cuts for Reality Labs’ metaverse unit while reallocating investment toward AI glasses and wearables. Despite the turmoil, Meta reports employee sentiment improved in the second half of 2025, with optimism rising to 80% in internal surveys.
Investors remain skeptical of Meta’s massive AI spending, with shares up only 7.5% this year, underperforming the S&P 500 and most Magnificent 7 peers. Analysts say Meta must “articulate its vision” and “demonstrate steady growth” to justify its AI investments.
Key Quotes
The company must articulate its vision, show how its pieces fit together, and, most importantly, demonstrate steady growth
Mike Proulx, research director at Forrester covering Meta, expressed investor concerns about Meta’s AI strategy and the need for clearer communication about how its massive investments will translate into business results.
nobody really knew what anyone was doing
Joena Zhang, a former Meta Superintelligence Labs employee, described the chaotic first half of 2025 at MSL in a November LinkedIn post, highlighting the lack of clear direction and decision-making during the AI reorganization.
Meta is now one of the only companies training frontier-class models and deploying them to billions of users, which is exactly where I want it to be
Shay Boloor, chief market strategist at Futurum Equities, defended Meta’s transformation, arguing that the changes have enabled faster model releases and integration across Meta’s platforms despite internal turmoil.
Meta in 2025 is a very different company from what Oculus & Facebook were in 2017
An engineer who left Meta in August after nearly eight years cited a “matter of principles” in his internal farewell message, expressing concern about the company’s political posture and alignment with government that clashed with his personal values.
Our Take
Meta’s transformation exposes the fundamental tension between moving fast in AI and maintaining organizational coherence. The company’s four reorganizations in six months suggest strategic uncertainty rather than decisive leadership. While Zuckerberg’s $14 billion Scale AI investment and aggressive talent acquisition demonstrate commitment, the exodus of AI researchers and public criticism from former employees indicate deeper problems.
The cultural shift toward “masculine energy” and harsh performance reviews may deliver short-term efficiency gains but risks long-term talent retention and innovation. Meta’s approach of hiring external AI talent at premium compensation while demoralizing existing employees creates a two-tier system that undermines collaboration.
Most concerning is the lack of clear AI product strategy. Despite billions in investment, Meta hasn’t articulated how its AI efforts translate into defensible competitive advantages beyond matching rivals’ capabilities. The market’s tepid response—shares up just 7.5% versus the S&P 500’s stronger performance—suggests investors share these concerns about execution and return on investment.
Why This Matters
Meta’s aggressive AI transformation represents a pivotal moment in Big Tech’s race for AI dominance. As one of the few companies training frontier-class models and deploying them to billions of users across Facebook, Instagram, and WhatsApp, Meta’s success or failure will significantly impact the AI industry’s competitive landscape.
The internal turmoil reveals the human cost of the AI arms race, as companies sacrifice workplace culture and employee satisfaction in pursuit of technological leadership. Meta’s experience offers a cautionary tale about the challenges of rapid AI-focused reorganization, talent acquisition wars, and the difficulty of maintaining coherent strategy amid constant pivots.
The shift from metaverse to AI also signals a broader industry trend, as companies abandon earlier bets to chase generative AI opportunities. Meta’s willingness to cut thousands of jobs and implement harsh performance reviews reflects a new era of tech industry austerity, where AI investment takes priority over employee retention and workplace culture. Whether this approach delivers the “personal superintelligence” Zuckerberg envisions—or simply burns through talent and capital—will shape how other tech giants approach their own AI transformations.
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Source: https://www.businessinsider.com/meta-ai-overhaul-mark-zuckerberg-year-intensity-2025-12