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Meta Cuts About 700 Jobs in AI Reorganization

The cuts signal a pivot to heavy AI spending, drawing fresh attention to new executive stock awards.

Overview

  • The company, which notified staff Wednesday, cut roles across Reality Labs, recruiting, sales, Facebook and global operations in a restructuring drive.
  • Meta said it is trying to place some affected staff in other roles, and the reductions touch less than 1% of its roughly 79,000 employees.
  • Leaders have set an AI‑first strategy with record 2026 capital spending of $115 billion to $135 billion for data centers, servers and other infrastructure.
  • Less than a day before the layoffs, Meta disclosed a new stock‑option plan for six top executives that could be worth up to $921 million each if the company reaches a $9 trillion valuation by 2031.
  • The latest step follows January cuts of roughly 1,000 roles in Reality Labs and years of large losses at the unit, while earlier reports of far broader layoffs remain unconfirmed.