Meta Layoffs: 700 Jobs Cut as Tech Giant Balances AI Push and Executive Incentives
Meta has laid off 700 employees across key divisions including Reality Labs, as it shifts focus toward AI. The move comes shortly after announcing executive stock incentives worth up to USD 921 million. The company may cut more jobs globally while increasing AI spending and restructuring operations.
Bengaluru, March 26: Meta Platforms has laid off around 700 employees across multiple teams, including its struggling Reality Labs division, even as it rolls out lucrative stock incentives for top executives. The move signals a broader restructuring effort as the company pivots aggressively toward artificial intelligence.
According to a report by The New York Times, the layoffs impacted divisions such as Reality Labs, recruiting, sales, and Facebook. Reality Labs, responsible for virtual reality and metaverse development, has reportedly incurred losses exceeding USD 80 billion. The company is also said to be scaling back future metaverse-focused projects for VR headsets. Meta Employees in Wearables and Ads Divisions Told To Work Remotely, HR Sends Email As Layoffs Loom.
Some affected employees are being offered alternative roles within the company, although these positions may require relocation. A company spokesperson stated that such restructuring is part of ongoing efforts to align teams with long-term goals. Meta Layoffs Lawsuit: Former Senior Director Nicolas Franchet Sues Mark Zuckerberg’s Firm for Age Discrimination in 2025 Job Cuts.
This marks the second round of job cuts in Reality Labs this year, following the elimination of 1,000 roles in January under CEO Mark Zuckerberg. Reports suggest that Meta could eventually cut up to 15,000 jobs globally as part of a wider cost-control strategy.
Notably, the layoffs come just hours after Meta introduced a new stock option program for its top leadership. The plan could boost executive compensation by as much as USD 921 million per person over five years, contingent on the company reaching a USD 9 trillion market valuation by 2031. Currently, Meta’s valuation stands at approximately USD 1.5 trillion. Zuckerberg himself is not included in this incentive scheme.
The company is simultaneously ramping up its AI investments, acquiring firms like Moltbook and Manus AI and recruiting top talent from AI startups. It has projected spending between USD 162 billion and USD 169 billion in 2026, largely driven by AI infrastructure such as data centers.
However, challenges remain. Meta has reportedly delayed the launch of its upcoming AI model “Avocado,” developed by its Superintelligence Labs led by Alexandr Wang, after it failed internal benchmarks.
The layoffs highlight Meta’s shifting priorities as it bets big on AI while trimming costs elsewhere.
(The above story first appeared on LatestLY on Mar 26, 2026 10:30 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).