‘Tech layoffs continue’: Meta cuts 700 jobs as it shifts focus to AI investment
&imwidth=600&imheight=450&format=webp&quality=medium "‘Tech layoffs continue’: Meta cuts 700 jobs as it shifts focus to AI investment")
Meta lays off hundreds while boosting spending on artificial intelligence
Meta has reportedly laid off about 700 employees across multiple teams, including its Reality Labs division, as part of ongoing restructuring. The cuts affected departments such as recruiting, sales and Facebook product teams.
Meta has reportedly laid off around 700 employees across several teams, including its Reality Labs division. The move comes as the company continues restructuring operations while increasing investment in artificial intelligence.
According to a report by The New York Times, the job cuts affected multiple departments such as recruiting, sales and teams working on Facebook products. The layoffs were announced only hours after the company introduced a new stock option programme for top executives.
Meta layoffs affect several departments
The job reductions include workers from Reality Labs, Meta’s division focused on virtual and augmented reality products linked to the metaverse.
Reality Labs has faced major financial losses in recent years. Reports suggest the unit has lost more than $80 billion since its creation as the company invested heavily in building virtual reality technology. This is also the second round of layoffs affecting the division this year. In January, the company cut around 1,000 jobs within Reality Labs. Some affected employees may be offered alternative roles within the company, though these positions could require relocation.
A Meta spokesperson said teams regularly undergo restructuring to ensure they are aligned with company goals.
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Executive incentives announced before layoffs
The layoffs came shortly after Meta announced a new stock option programme for its senior leadership.
Under this scheme, top executives could receive additional compensation worth up to $921 million over five years. The incentives would depend on whether the company achieves a $9 trillion market valuation by 2031.
Currently, Meta’s market value stands at about $1.5 trillion.
The company said the programme is designed to retain leadership talent during a period of major technological change. The scheme does not include CEO Mark Zuckerberg.
Meta increasing investment in artificial intelligence
Meta has been investing heavily in artificial intelligence as it reshapes its long-term strategy.
The company has reportedly acquired several AI startups and hired engineers and executives specialising in agent-based AI systems. These systems are designed to perform tasks autonomously rather than simply generating text responses.
Meta also expects significant spending on AI infrastructure. The company has forecasted between $162 billion and $169 billion in spending in 2026, largely for building data centres and supporting AI technologies.
Delays in new AI model development
At the same time, Meta is reportedly facing challenges with some AI projects. Reports indicate that the company delayed the release of its upcoming AI model called Avocado, developed by the Meta Superintelligence Labs unit. The division is led by Alexandr Wang, who joined Meta after the company acquired his startup Scale AI in a deal valued at $14.5 billion. Internal testing reportedly showed that the model did not meet performance expectations, prompting further development work.
Industry trend: tech companies restructuring for AI
Meta’s latest layoffs reflect a broader trend across the technology industry. Companies are restructuring teams and shifting resources toward artificial intelligence, data infrastructure and automation.
In recent months, several major firms have announced job cuts while increasing spending on AI research and cloud computing. The transition highlights how companies are preparing for the next phase of the technology industry, where AI systems are expected to play a central role in products, services and digital platforms. For Meta, the latest restructuring shows the company’s effort to balance rising AI investments with operational changes across its workforce.
