Two pieces of Meta news this week that are best read together. First: the next big AI model, codenamed ‘Avocado,’ is being pushed to May. Second: roughly 16,000 employees are being let go — about 20 percent of the workforce.
Avocado Falls Behind
The original plan was a spring release. Now it’s May at the earliest. The reason, according to internal sources: Avocado underperforms current models from Google, OpenAI, and Anthropic in benchmarks. Meta did generate buzz recently with Llama 4 Scout and Maverick — but the technical substance didn’t quite land.
That’s a problem. Meta has declared AI its top strategic priority and is pouring billions into infrastructure. When your flagship model can’t keep up, the pressure mounts fast.
16,000 Jobs Gone
At the same time, one of the biggest layoff waves in Meta’s history is underway. The company is cutting about 20 percent of its workforce. The official line: efficiency and focus on AI. They want to identify ‘low performers’ and act faster.
The reality is probably more nuanced. Meta is spending more on AI infrastructure than ever before — while also needing to prove that margins hold up. Headcount is the obvious lever.
What This Means
Meta isn’t out of the AI race. But a delayed model combined with massive layoffs sends a clear signal: the pressure is immense. Zuckerberg has bet everything on AI. Now he needs to deliver.
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