Meta Employees in Wearables and Ads Divisions Told To Work Remotely, HR Sends Email As Layoffs Loom

Menlo Park, March 25: Meta has reportedly instructed employees in specific divisions to work from home on Wednesday, a move that coincides with reports of impending large-scale layoffs at the technology giant. Staff within the wearables and advertising units received internal communications from human resources on Tuesday night, advising them of the remote work requirement while leadership prepares to share further information.

The directive comes amid reports that the company is preparing for a significant reduction in its global workforce. While Meta has not officially confirmed the number of affected roles, industry estimates suggest that up to 20% of the company’s employees could be let go. Based on Meta’s late-2025 headcount of nearly 79,000, this could result in approximately 16,000 job cuts across various departments. Meta Layoffs Lawsuit: Former Senior Director Nicolas Franchet Sues Mark Zuckerberg’s Firm for Age Discrimination in 2025 Job Cuts.

Meta Layoffs: Strategic Pivot Toward Artificial Intelligence

The potential restructuring follows a period of intense investment in artificial intelligence (AI) and high-end hardware. Meta’s wearables division, which manages augmented reality (AR) business and AI-integrated glasses, was previously identified as a core investment priority for 2026. However, the company has recently shifted its strategic focus away from the "Metaverse" concept in favour of generative AI and advanced computing.

This shift was already evident earlier this year when Meta reduced the headcount of its Reality Labs group by 10% to 15% in January. Sources indicate that managers across the organization were recently tasked with developing cost-cutting plans to streamline operations and reallocate resources toward senior leadership and AI infrastructure.

Executive Compensation and Financial Performance

The news of potential layoffs follows the unveiling of new stock-based compensation programmes for Meta’s senior leadership. The plan includes an increased number of restricted stock units and tens of thousands of stock options tied to future performance targets through March 2031. Notably, these compensation updates do not include CEO Mark Zuckerberg.

The $1.5 trillion company has faced a challenging market environment over the past year, with its stock price declining by nearly 3%. The move to reduce headcount is viewed by analysts as an effort to protect margins while funding the expensive transition into a leading AI-first enterprise.

A Meta spokesperson declined to comment on the internal emails or the specific scale of the projected layoffs. The instruction for employees to stay home is a tactic previously used by tech companies during mass redundancy events to manage security and logistics. Perplexity CEO Aravind Srinivas Suggests AI Layoffs Could Fuel New Era of Entrepreneurship.

As of Wednesday morning, employees in the affected divisions are awaiting further clarity from leadership regarding the status of their roles. The advertising division, which remains Meta's primary revenue driver, is expected to see structural changes as the company integrates more automated AI tools into its ad-buying platforms.

(The above story first appeared on LatestLY on Mar 25, 2026 01:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).