Meta Platforms has laid off around 700 employees across multiple teams, even as it unveiled a new stock-based compensation plan for senior executives, highlighting the company’s ongoing shift towards artificial intelligence.
The job cuts are part of a broader restructuring, with earlier reports indicating that Meta plans to reduce more than 15,000 roles globally. According to The New York Times, the latest layoffs have impacted teams across Reality Labs, recruiting, sales and core Facebook operations.
The move follows Meta’s decision to scale back its metaverse ambitions, particularly in virtual reality headsets, after Reality Labs accumulated losses exceeding $80 billion. This marks the second round of layoffs within the division, after around 1,000 jobs were cut in January.
Some affected employees are being reassigned to new roles within the company, albeit with relocation requirements.
Pivot to AI
Meta is now aggressively expanding its artificial intelligence capabilities. As part of this push, it has acquired Moltbook and Manus AI, and hired senior executives from AI start-up Dreamer to strengthen its next phase of growth.
The pivot is reflected in its capital allocation. Meta’s capital expenditure is projected to rise to between $162 billion and $169 billion in 2026, largely driven by investments in AI infrastructure, including data centres.
The company has also reportedly delayed the launch of its upcoming AI model, Avocado, being developed by its Meta Superintelligence Labs unit led by Alexandr Wang, after it failed to meet internal performance benchmarks.
Executive Incentives
Even as it trims its workforce, Meta is rolling out fresh incentives for top leadership. A day earlier, the company introduced a new stock option programme aimed at retaining key executives.
Under the scheme, some executives could receive up to $921 million (around ₹8,660 crore) each over the next five years, contingent on Meta reaching a $9 trillion market capitalisation by 2031. The company is currently valued at around $1.5 trillion.
Meta said the programme is designed to retain talent amid intensifying competition in AI and to support its long-term growth ambitions. Notably, CEO Mark Zuckerberg is not part of the scheme.