Meta is at a crossroads. The company just laid off 8,000 employees, about 10 percent of its workforce. At the same time, it reassigned 7,000 more staff to AI-focused projects. The goal is to speed up Meta’s shift to artificial intelligence. But this big move has caused a stir among investors and workers alike.

The largest sovereign wealth fund in the world, Norway’s $2.3 trillion Government Pension Fund Global, has raised concerns about Meta’s governance. It refused to support the reappointment of John Elkann to Meta’s board. The fund’s main issue is Elkann’s attendance at board meetings. He missed nearly 30 percent of sessions last year. The fund believes directors should fully commit to their roles and attend all meetings.

This is unusual. The Norwegian fund usually votes with management. It supported 94 percent of board recommendations last year. But this time, it backed half of the shareholder proposals at Meta’s annual meeting. These included demands for better AI data privacy rules and transparency around how Meta collects user data for AI training.

Meta is spending between $115 billion and $145 billion on AI infrastructure this year. That’s nearly double last year’s investments. Yet, shareholders still lack clear information on how Meta handles data feeding its AI systems. The Norwegian fund also supported calls for reports on human rights due diligence, hate speech on Meta’s platforms, and climate impact from AI data centers.

Worker Concerns and Corporate Surveillance

While investors press for better governance, Meta’s employees face a tough environment. The company introduced a tracking system that monitors every click, keystroke, and mouse movement on worker devices. This data feeds AI models designed to automate tasks. In effect, employees are training the very AI that could replace them.

Over 1,500 employees signed a petition opposing this surveillance. Flyers protesting the program appeared in Meta offices. Yet, there’s no way to opt out. Many workers feel the company is using AI to cut costs and reduce headcount. Morale is low, and staff report a culture of fear and top-down management.

Meta’s CEO, Mark Zuckerberg, promised no more mass layoffs for at least seven months after the recent cuts. But the message offers little comfort. The company’s CFO admitted they don’t know the optimal long-term headcount. Structural changes include shutting down 6,000 open roles and flattening management layers. Remaining staff are reorganized into smaller, AI-native teams.

Environmental and Regulatory Pressures

Meta isn’t the only tech giant feeling the heat. Amazon and Google face shareholder resolutions demanding transparency on AI energy use and climate impact. Training and running AI models consume massive amounts of electricity and water. AI data centers already use enough power to supply 7 million U.S. homes. That number could rise to cover 22 percent of U.S. households by 2028.

Water use is also a concern. North American data centers consumed around 1 trillion liters of water in 2025. Cooling the GPUs is a thirsty business. These resource demands clash with the companies’ net-zero promises. Independent assessments rate Amazon and Google’s climate pledges as low integrity. Meta faces similar scrutiny, with investors calling out its capital expenditures that expand AI infrastructure despite environmental risks.

Regulators in Europe are also targeting Big Tech. Google, Meta, and TikTok face complaints for failing to protect users from financial scams on their platforms. The European Digital Services Act requires stronger action against illegal and harmful content. Consumer groups accuse these companies of ignoring most scam reports and allowing fraudulent ads to run unchecked.

Fines for breaches of these rules can reach six percent of global annual turnover. This adds financial risk to the companies already juggling governance, environmental, and workforce challenges.

The pressure on Meta sums up a bigger story. Big Tech’s AI rush is reshaping companies, jobs, and the planet. Investors want better governance and transparency. Workers want respect and security. Regulators want safer, cleaner platforms. Meta’s future depends on how it balances these forces while racing toward an AI-driven world.