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Meta Platforms Suspends Collaboration with AI Partner Mercor Following Data Breach Reports

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Meta has reportedly put all collaboration with AI recruitment firm Mercor on hold following a recent cyberattack that targeted the startup. The Menlo Park-based tech giant was among Mercor’s largest clients, relying on the company to hire subject matter experts who validate and perform quality analysis on outputs from large language models (LLMs). The breach is said to have compromised hundreds of gigabytes of sensitive data, prompting Mercor to launch an internal investigation into the incident.

According to a report by Wired, Meta’s pause on work with Mercor is indefinite. The publication cites unnamed sources familiar with the matter, who also noted that other major AI companies are reassessing their partnerships with the firm in the wake of the cyberattack. The move reflects growing caution within the AI industry, as companies evaluate the security and integrity of third-party partners that handle sensitive model validation work.

Mercor, founded in 2023, specializes in hiring domain experts to conduct quality checks on AI outputs. The startup has worked with several leading AI companies, including OpenAI and Anthropic, to ensure that large language models deliver accurate and reliable responses. Outsourcing this work allows AI firms to maintain model performance standards while continuously improving their systems based on expert feedback.

The company has attracted significant investment, having raised $350 million (roughly Rs. 3,257 crore) in a Series C funding round in October 2025, which valued Mercor at $10 billion (around Rs. 93,067 crore). Despite its rapid growth and high-profile partnerships, the recent security breach poses a serious challenge, highlighting the risks associated with handling large volumes of sensitive AI data and emphasizing the importance of cybersecurity in AI operations.

Meta Plans Workforce Shake-Up with 200 Job Cuts and Removal of Middle Management Roles in AI Shift

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Meta Platforms is reportedly preparing another round of job cuts as part of its broader push toward artificial intelligence. According to recent reports, the company could lay off up to 200 employees, with the impact largely limited to its teams based in the United States rather than its global workforce. This move reflects a continued shift in priorities as the tech giant doubles down on AI-driven development.

The layoffs are also said to coincide with a structural overhaul inside the company. Meta is reportedly moving away from traditional middle management roles in an effort to simplify its internal hierarchy. Instead of maintaining layered management structures, the company is exploring a leaner approach, replacing conventional titles with newer roles such as “org lead,” which are intended to align more closely with fast-moving, AI-focused teams.

Details from filings with California’s Employment Development Department, cited in reports, suggest that a significant portion of the cuts will occur in Silicon Valley. Around 124 roles could be affected at the Burlingame office, with an additional 74 positions in Sunnyvale. These changes are expected to take effect by the end of May, marking yet another phase in Meta’s ongoing restructuring efforts.

This development follows earlier workforce reductions within the company. In January, Meta reportedly cut about 10 percent of its Reality Labs division, affecting roughly 1,500 employees. That move was widely seen as part of a strategic pivot away from certain metaverse-focused investments and toward accelerating its ambitions in artificial intelligence, which continues to be a central focus for the company’s future growth.

Entergy Says Revised Meta Data-Center Deal Boosts Customer Savings

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Entergy announced that a revised agreement with Meta will deliver significantly higher savings for customers tied to a major data-center project in Louisiana.

Under the updated deal, Meta will cover the full cost of service for its planned hyperscale data center in northeast Louisiana. The agreement is expected to generate nearly $2 billion in customer savings over 20 years, in addition to $650 million previously projected.

Meta had earlier revealed plans to invest around $10 billion in the facility, located in Richland Parish. The project is part of a broader wave of infrastructure expansion driven by growing demand for artificial intelligence and cloud computing services.

To support the development, Entergy Louisiana is planning a substantial upgrade of its energy infrastructure. This includes building seven new natural gas power plants with a combined capacity exceeding 5,200 megawatts, alongside new transmission lines, battery storage systems and upgrades to nuclear facilities.

The deal reflects a broader industry trend in which large technology firms partner with utilities to secure reliable energy supplies for power-intensive data centers.