Meta freezes hiring as AI costs spark investor concern
After months of aggressive recruitment, Meta has frozen AI hiring, citing organisational planning, as analysts warn about rising labour expenses and stock-based compensation risks.
Meta has frozen hiring in its AI division, halting a spree that had drawn top researchers with lucrative offers. The company described the pause as basic organisational planning, aimed at building a more stable structure for its superintelligence ambitions.
The freeze, first reported by the Wall Street Journal, began last week and prevents employees in the unit from transferring to other teams. Its duration has not been communicated, and Meta declined to comment on the number of hires already made.
The decision follows growing tensions inside the newly created Superintelligence Labs, where long-serving researchers have voiced concerns over disparities in pay and recognition compared with recruits.
Alexandr Wang, who leads the division, recently told staff that superintelligence is approaching and that significant changes are necessary to prepare. His email outlined Meta’s most significant reorganisation of its AI efforts.
The pause also comes amid investor scrutiny, as analysts warn that heavy reliance on stock-based compensation to attract talent could fuel innovation or dilute shareholder value without precise results.
Despite these concerns, Meta’s stock has risen by about 28% since the start of the year, reflecting continued investor confidence in the company’s long-term prospects.
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