Mark Zuckerberg's Meta has reportedly laid off around 700 employees across major departments, including Reality Labs, recruitment, sales, and the main Facebook division.
A spokesperson said the moves were about 'aligning teams with business goals,' but employees may see it differently. Reports suggest these could be just the start, with hints of up to 15,000 global job cuts in the coming months.
Reality Labs, the team behind Meta's Metaverse projects, has been hit hardest. The division has already lost more than USD 80 billion, and the company is scaling back VR headset development and trimming staff. This is the second round of cuts in Reality Labs this year, 1,000 jobs were already cut earlier.
Why are top executives getting big rewards?
Just hours before the layoffs, Meta announced a new stock options plan for its top leaders. These incentives could be worth up to USD 921 million each over five years if Meta reaches a USD 9 trillion valuation, a huge leap from its current USD 1.5 trillion. Mark Zuckerberg is not included in this plan, but it still represents a huge payday for executives.
How is Meta investing in AI?
Meta is doubling down on artificial intelligence, snapping up startups like Moltbook and Manus AI, hiring top talent (including former Google executives), and investing billions in data centres. In 2026 alone, the company plans to spend up to USD 169 billion, mostly on AI research and infrastructure.
Meta's new AI model, Avocado, from its Superintelligence Labs, has already failed internal testing and has been delayed. Alexandr Wang, who runs the lab, joined Meta after a multi-billion-dollar acquisition of his company, Scale AI.
What does this all mean for employees and the company?
Meta is following a trend seen across Big Tech, cutting jobs to reduce costs while racing to dominate the future with AI. This creates uncertainty for staff but signals the company's relentless focus on long-term growth and technological leadership.