Meta uses AI-based incentives to gauge automation impact as it plans to lay off about 15,000 employees

Meta, led by CEO Mark Zuckerberg, announced mass layoffs across multiple divisions, including operations and sales, recruitment, and Reality Labs and Facebook. The company has previously reduced headcount, including a January cut of 1,000 employees in Reality Labs, a unit that has lost about $73 billion since 2021 amid weak demand.

AI-linked internal program amid layoffs

Alongside the layoffs, Meta reportedly rolled out an internal program designed to encourage employees to use AI tools. According to a leaked internal memo, the company created a game called “Level Up” that awards badges to employees who achieve results using AI. Meta also introduced an “AI Performance Assistant” tool to help employees draft performance-review reports.

The program includes renaming engineers as “AI Builders” and reorganizing teams into smaller groups called “AI pods.” While the initiative may appear to be a motivational effort, the memo and related documents indicate it is also intended to measure how much AI can replace human work.

Targets for AI-assisted coding and agent use

Meta’s internal documents set specific requirements for AI usage. For engineers, Meta requires that 65% of them write more than 75% of code with AI by mid-year. The Scalable Machine Learning unit, which develops AI models, has higher targets, requiring 50% to 80% of code to be AI-assisted.

For core products including Facebook, Messenger, and WhatsApp, Meta requires that 55% of all code changes be “agent-assisted.” It also requires that 80% of engineers from mid-level up use AI tools.

Performance evaluations tied to “AI-created impact”

The most significant reported change is that, starting this year, all Meta employees will be evaluated based on “AI-created impact” when performance is rated. The documents describe this as a shift in how promotions are determined, with the implication that advancement will be difficult without AI-driven contributions.

Meta is piloting the framework with 1,000 employees in Reality Labs. Each participant will be assigned one of three titles: AI Builder, AI Pod Lead, or AI Org Lead. The pods are described as small teams with diverse expertise, including engineers who also perform design work. Pod leads manage daily tasks, while org leads handle performance reviews and promotions, supported by an AI system.

“The ultimate goal is to increase technical productivity and product quality. To achieve this, we are changing how we operate, how we organize, and how we support one another.”

Cost pressures and industry ripple effects

Reuters has reported that Meta is considering laying off at least 20% of its total workforce—around 15,000 people—to offset rising costs tied to AI investments. The article argues that the company’s AI incentives are intended to test how much work can be done with fewer people while maintaining output.

Other firms are described as watching Meta’s approach. After Meta cut 11,000 jobs in 2022, other parts of the tech sector followed. The article also notes that when Meta tied performance to AI, KPMG reportedly adopted similar steps within weeks, and Accenture told managers that AI tool usage would influence promotions.

It also cites Block, Jack Dorsey’s company, which cut 40% of staff and told investors that “smart tools have changed the meaning of running the company.” The article says Block’s stock rose by about 24% afterward, attributing the reaction to Wall Street rewarding reductions in headcount.

Meta’s AI spending and reported strategy

Meta is spending about $135 billion on AI this year while cutting thousands of employees. The article frames these actions as part of the same strategy: using AI usage incentives and internal competition to collect data on how quickly AI can substitute for labor.

It also describes a sequence in which staff are required to use AI, performance is measured based on AI output, and staffing levels are reduced as AI handles a larger share of work.