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▲ Meta (META), stock price decline/AI generated image
Meta Platforms (META)'s AI transition strategy is simultaneously revealing slower-than-expected performance and organizational restructuring aftershocks, creating cracks in Wall Street's AI premium.
According to the economic media outlet Benzinga on July 2 (local time), Meta Platforms CEO Mark Zuckerberg told employees at an internal town hall that the company's AI-centric organizational restructuring had not made progress as quickly as management had hoped. Zuckerberg stated, "The trajectory of agent development over at least the last four months has not actually accelerated in the way we expected." He added that the bet on the new organizational structure "has not yet paid off."
In May, Meta laid off approximately 10% of its global workforce and reassigned about 7,000 employees to AI-focused teams. This reorganization was intended to support the company's aggressive expansion of AI investment. However, Zuckerberg admitted that the restructuring did not go as "cleanly" as planned and explained that management had misjudged the timing of the changes.
Zuckerberg revealed that earlier this year, management was "very optimistic" about the pace of AI tool development. He specifically explained that coding assistant tools like Anthropic's Claude Code were expected to develop faster. He also mentioned concerns that Meta could fall behind competitors if it didn't move aggressively.
However, Zuckerberg did not believe that the results of AI investment had completely stalled. He stated that Meta expects to start seeing more meaningful returns from AI investments within the next three to six months. While the pace of AI agent development fell short of expectations, it suggests that the company's strategic direction itself will be maintained.
Controversy over employee monitoring also came under scrutiny. At the same town hall, Meta CTO Andrew Bosworth said that an investigation into employee activity tracking software found that employee data was not used for training AI models. Bosworth added that if the program were reintroduced, it would operate on a voluntary participation basis, stating, "It's a good thing for those who are comfortable with it, and not a problem for those who are not."
Meta's stock closed down 4.90% at $582.90 in regular trading on Thursday, and rose 0.34% to $584.88 in after-hours trading. According to Benzinga Edge Rankings, Meta was in the 88th percentile for growth, but while long-term returns were negative, only short-term price trends remained positive. With AI investment expectations and restructuring costs both highlighted, market scrutiny around Meta's stock is increasing.
*Related article: Meta 'stumbles' amid sharp decline from Asia...gives back stock gains despite AI clouding business card
[Key Article Summary]
-Mark Zuckerberg stated that Meta's AI agent development and organizational restructuring results have not appeared as quickly as expected.
-In May, Meta laid off approximately 10% of its global workforce and reassigned about 7,000 employees to AI-focused teams.
-Zuckerberg expects AI investment results to become more apparent within the next three to six months.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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