Meta is laying off several hundred employees across major divisions, including Facebook and Reality Labs, as it restructures around artificial intelligence and shifts away from its costly metaverse strategy after investing tens of billions with limited returns.
The company is redirecting resources toward AI and wearable technology, areas it sees as offering stronger growth potential, as demand for virtual reality weakens and investor interest declines.
CEO Mark Zuckerberg is accelerating the push into AI, positioning it as a major driver of how work and productivity will evolve in the coming years.
The layoffs affect a small portion of Meta’s roughly 78,000 employees, with some workers being offered alternative roles, though relocation may be required. The move follows earlier job cuts, including around 1,500 positions in Reality Labs, and is part of a broader effort to streamline operations and rely more on AI tools.
At the same time, Meta is significantly increasing investment in AI infrastructure, planning up to $135 billion in capital expenditures this year, mainly for data centers and servers, alongside a projected rise in operating costs tied to hiring technical talent.